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...current focus--what's becoming known as the Paulson Plan, although it was first floated in October by Federal Deposit Insurance Corp. chair Sheila Bair--is an effort to get lenders and loan servicers to freeze interest rates on some of the 2 million subprime mortgage loans that are due for sharply upward rate resets in the next two years. Paulson has said the five-year freeze would apply to borrowers "with steady incomes and relatively clean payment histories who could afford the lower introductory mortgage rate but cannot afford the higher adjusted rate...

Author: /time Magazine | Title: Paulson's Mortgage Fix | 12/6/2007 | See Source »

...usually no less than 50:1 and is typically 100:1. At a ratio of 100:1, that means for every $1,000 you invest, you're actually trading with $100,000 - that is, you are actually carrying the risk on $100,000, the difference being a loan from the broker...

Author: /time Magazine | Title: Should You Bet Against the Dollar? | 12/3/2007 | See Source »

Sure enough, house prices stopped rising in 2006, and now banks and brokerages are taking huge write-downs tied to the mortgage-backed instruments that kept the Ponzi-loan machine oiled. Economists are furiously debating whether we're on the brink of a full-fledged "Minsky moment," in which lending shrinks sharply across the board. Nouriel Roubini, an NYU economist and a widely read forecaster, got a lot of attention in November by professing to see risk of "generalized meltdown of the financial system of a severity and magnitude like we have never observed before." That sounds bad. But even...

Author: /time Magazine | Title: Bracing for a Recession | 11/29/2007 | See Source »

...Culture is often preserved even when language is lost. Many today are familiar with Greek myths; few can speak or read ancient Greek. Further, loan words in English—common words like “rendezvous” and “fiesta” that are borrowed from other languages—illustrate that English words (and the ideas behind them) don’t automatically replace foreign ones (and the ideas behind them). On the contrary, language encourages a linguistic survival-of-the-fittest. If a foreign idea is so nuanced as to not have an English...

Author: By Justine R. Lescroart | Title: Separation of Tongue and State | 11/28/2007 | See Source »

Harvard is disputing a lawsuit brought by a real estate developer that accuses the University of backing a loan with an interest rate that exceeds legal limits, according to court documents. The lawsuit, filed by Fred Fahey, claims that Realty Financial Partners—a company which Harvard and other institutions have invested in—charged an interest rate on a $6.7 million loan of 42 percent, exceeding the state limit of 20 percent set under the Criminal Usury Act. Fahey, a real estate developer in Dracut, Mass., took the loan to finance a 186-home community and golf...

Author: By Kevin Zhou, CRIMSON STAFF WRITER | Title: Harvard Sued In Usury Claim | 11/27/2007 | See Source »

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