bankruptcy
One. The economic arguments are insufficient to understand the root causes of the disaster we are living. Not only has it been “failures” of financial regulation and “errors” policy, as economists say. There is something more intriguing: a moral bankruptcy of the new capitalism that emerged in the eighties of last century.
Not taking into consideration the moral bankruptcy is impossible to understand the financial crisis of 2008. And, more importantly, neither are some of the damage that leaves: the social legitimization of the market economy, one that encompasses discredit the policies that governments are doing.
It is disheartening to see how to use the argument of too big to fail [too big to fail] to justify the government rescue of banks and the maintenance of employment and salaries to the bankers, making the rest pay the bill with their taxes and cuts in social spending. This “medicine” as well blame the victims, increase inequality.
The risk then is the discrediting of democratic politics and the emergence of serious governance in our societies.
Two. To understand the roots of this moral bankruptcy, you have to cross the frontiers of economic analysis and into other disciplines to better capture the ethical foundations of the economy, based on values such as trust, fairness, justice and good faith in economic relations, and the negative consequences of inequality, fraud, plunder and corruption.
That conviction has led me to coordinate a collaborative trial in his own title expresses this need: The crisis of 2008. From economics to politics and beyond, edited the collection Cajamar Mediterranean Economic Foundation (www.mediterraneoeconomico.com). Along with the view of economists, including philosophers, sociologists, historians, journalists, essayists and novelists. Although their eyes are different, the polyphony of voices is in tune. By contrast, offers a more comprehensive view, in which the voices of economists are complemented by other thinkers and social scientists.
Three . Economists offer four types of explanations, not mutually exclusive, which rest on the idea of “failure”, “errors” and “imbalances”.
The first attributes the credit bubble and the assumption of risks “failures” of financial deregulation that led to the demise of the old model of prudent banking and boring, that kept its own balance sheet risk, and fostered new practices (” financial innovation “) that led to excessive risk taking to scatter across the globe.
The second focuses on the “errors” of a prolonged policy of low interest rates practiced in the U.S. (to prevent the recession after the bubble burst in early punto.com 2000) and Europe (to try Germany get their posintegración anorexia).
The third looks at the “global imbalances”, which made some large manufacturing exporters like China and Germany, instead of using these revenues create large masses of savings (Savings global glut) that financed the credit bubble in the U.S. and the European periphery.
A fourth explanation links the credit bubble and housing bubble to inequality. Unable to cope by redistributive policies, governments have used cheap credit and tariff policies to housing to offset falling income from working and middle classes. The fact that the housing bubble has been more intense in the North Atlantic countries, like Spain, seems to support this hypothesis.
Four . Non-economists look towards another place. Seek the roots of the crisis a “moral bankruptcy” of the economy that would have occurred in the nineties.
We are facing an intriguing phenomenon. Something happened in the eighties that reversed the downward trend in inequality since the Second World War. Since the eighties, the distribution of income became more unequal. The rich, especially in the financial sector have been getting richer.
The causes are unclear. Coincided with changes of various kinds: technical (new technologies of information and telecommunications), economic (globalization), political (the fall of the Berlin Wall) and ideological (the emergence of the ideology of unfettered market). But they seem to have had more influence deregulatory policies and weakening of institutions exercising a certain social control, such as unions and the media.
The fall of the Berlin Wall and socialism played a decisive role. Ironically, not only left an orphan ethical basis for socialism, but capitalism. The old Calvinist ideology, based on the ethic of individual effort and responsibility, gave way to a new ideology in which the rhetoric of “free market impersonal laws” prevent judge the conduct of the actors from a moral perspective. That is, the logic of the market would take away free will and therefore personal responsibility. The economy would thus be freed from ethical foundations.
This fallacy given letter of nature to the “new hero” of capitalism. An amoral character, desacomplejado, free of any restrictions, who wants it all and now seeking to maximize the value of the action and its immediate profitability, rather than creating long-term economic value. It also benefits the umbrella of the “moral hazard”: he knows that the negative consequences of their actions do not pay for it, but society will come to your rescue.
Economists have an important role in the bankruptcy ethics. Although they know little of how the real world, they practice an arrogant economy, based on idealized assumptions of economic behavior that have been used to support free market policies. Only a modest economy, recognizing that knows little about the financial markets, will be a source of progress and stability.
Five . If true this moral bankruptcy of the economy, well-intentioned claim that correcting the “failures” of financial regulation will be sufficient to end the immoral behavior and put the genie of financial instability in the bottle is a wishful thinking, a interested illusion.
The evidence that is a false solution lies in the rapid recurrence of the same risk behaviors and bonuses featuring the leaders of the rating agencies and financial institutions that caused the disaster and were rescued with public money. Cause embarrassment to see the audacity to returning to practice the same behaviors. Not that they are immoral, amoral. They practice a “fraud innocent.”
A stable and lasting exit to the crisis requires a recasting of capitalism moral. I do not think we need another capitalism, but we need to save capitalism from these capitalists. The problem is that politics has lost autonomy and capacity to do so. Cause distress to see the confession of impotence David Cameron in the British Parliament, stating that his Government could not do anything to stop those behaviors.
But if politics does not regain its independence from the financial markets, and society is not able to express their outrage at these behaviors, there is no effective limits to the speculative economy, financial volatility and inequality.
If so, the increased risk of the next decade will be the growing lawlessness in our democratic societies. Some signs already point in that direction.
The political crises in the Maghreb, especially going through Libya, they pull a shy smile (or rather a sigh of relief) to Venezuela, the neighbor who watches the debacle of the Gaddafi regime oxygenates up a bit dented due to economic accounts increase in “oil basket” which now has the barrel of oil above $ 110.
There are many indicators that show a warming of the classic Venezuelan economic performance of rising costs and debts are financed almost exclusively on oil revenues-to the point that they fear that Venezuela might even stop paying their debts next year.
A report of the firm Capital Economics, was quoted by the magazine The Economist, presents his analysis bluntly: “There is a growing risk that the government (Venezuela) your payments would cease in 2012.” The signed specifically states that the price of Venezuelan bonds insurance (credit default swap) shows a 50% chance that Venezuela could go bankrupt by 2015.
Doubts began producing oil, whose decline was recognized by the Ministry of Energy and Petroleum of Venezuela to confirm that in 2010 produced an average 2.78 million barrels a day and not the 3 million daily it was the official figure until 2009. Read the rest of this entry »
When the burning of convents, libraries and schools by the left shortly after starting the republic, the government prevented Azaña fulfilled and hiciese enforce the law. And proud, four-night, “I took Maura to the balcony, I showed him the Puerta del Sol, and said, ‘You see no one. What is now our situation and that of the Republic if there had lying a few dead? “.”
The story reflects very well the folly of frivolity and political Azaña: it had become complicit in a massive violation of the law rather than defend the pretext that there may be one or several dead. He did not have any, of course, but that’s a risk that a ruler must assume, his own commitment, or resign. Another problem was that all the demagoguery of Republicans inciting such things, which then wanted to take a blind eye. The consequences were that the republic was inaugurated with a serious breach of the rule of law, which divided the country politically and morally, and that established the precedent of impunity, the republic survived and only in fits and starts with laws as brutal as the Defense of the Republic, censorship and almost permanent state of emergency. The Civil War came, ultimately, because the basis of civil peace, which is the rule of law was trampled upon from the beginning and with increasing severity by the left. Read the rest of this entry »
Since I could not wait much longer do, the rumors about the possible fall of the Greek country have returned and this time with more power.
It seems that Greece would be a few steps to be unable to pay its debt . Despite the financial support it has received from the European Union (EU) and good performance coming demonstrating continuous threatened by bankruptcy , according to reports from the European Council of Experts in Economics (GAF) in Munich, Germany.
The study presented by the GAF displays data on the economic and financial situation of Greece , which is stressed that the savings program implemented in the country remains completely inadequate if they want to reduce the deficit. The EU seems to be underestimating the Greek economic and financial crisis, and given the importance it deserves. Read the rest of this entry »
One economic arguments are insufficient to understand the root causes of the disaster we are living. Not only has it been “failures” of financial regulation and “errors” policy, as economists say. There is something more intriguing: a moral bankruptcy of the new capitalism that emerged in the eighties of last century.
Not taking into consideration the moral bankruptcy is impossible to understand the financial crisis of 2008. And, more importantly, neither are some of the damage that leaves: the social legitimization of the market economy, one that encompasses discredit the policies that governments are doing.
It is disheartening to see how to use the argument of too big to fail [too big to fail] to justify the government rescue of banks and the maintenance of employment and salaries to the bankers, making the rest pay the bill with their taxes and cuts in social spending. This “medicine” as well blame the victims, increase inequality.
The risk then is the discrediting of democratic politics and the emergence of serious governance in our societies.
Two. To understand the roots of this moral bankruptcy, you have to cross the frontiers of economic analysis and into other disciplines to better capture the ethical foundations of the economy, based on values such as trust, fairness, justice and good faith economic relations, and the negative consequences of inequality, fraud, plunder and corruption. Read the rest of this entry »
Bankruptcy Protection and Virtues
Bankruptcy is the legal recourse provided by the Federal Constitution that allows individuals and businesses with considerable economic difficulties removing a large amount of your debts and get a fresh new economic beginning . Well prepared, the bankruptcy petition is the ideal resource to stop the charges immediately and to regain economic and mental peace when the debts that beset us.
The Bankruptcy Code allows you to:
* Stop the collectors immediately;
* Remove and erase credit card debt and loans;
* Protect yourself from the vast majority of claims and liens;
* To avoid the foreclosure, even if you sued him and received sentence;
* Pay arrears on the mortgage and the car;
* Reduce your car payment;
* Remove most of tax debts;
* Paying alimony arrears, dedicating its revenues to this important priority.
The effects on the debtor’s assets are many. The main one is the loss of power to administer the estate. Besides, then we will explain the concepts of insufficient assets, the statement of annual accounts, the effect of competition on businesses, what happens to the custody of the estate and how property should be making records.
Administration of the estate
The effect on the debtor is the loss of the right to administer on the estate. This deprivation is initiated while the settlement. Thus, the creditors who acquire the right to manage the assets, which are part of the estate of a particular debtor.
Insufficiency of assets
In the final stage of the competition may bring any of the assets of the bankrupt are not sufficient to cover outstanding debts. This makes it fall on the debtor’s responsibility to pay the amount to the surplus. To do this, there is the possibility of negotiating with creditors and reach an agreement beneficial to both parties. Read the rest of this entry »
An active financial life involves being related to various financial instruments that are in the market and are part of the financial system. These mechanisms can be loans, credits and other tools to meet consumer needs, service delivery and investment. However, there is the possibility of acquiring more debt our borrowing capacity to cover, this is how it goes bankrupt. In other words, bankruptcy is the loss of economic capacity to repay outstanding debts, which occurs as a result a state of insolvency.
With respect to Spain, Spanish law has sought to cover the subject of bankruptcy for both individuals as for legal, and to that extent created a law regulating the various bankruptcy cases. Therefore, the bankruptcy law was established that in the beginning only applied to legal persons, but beginning in 2004, came into force also for individuals, for which fact the relevance lies in handling the issue of bankruptcy according to the premises specified in the Bankruptcy Act. The bankruptcy law was created on July 9, 2003, and entered into force after approval on September 2004.
The formation of this law led to the possibility of removing the suspension of payments as soon as the debtor declares its economic insolvency to pay. One of the purposes of bankruptcy law, and many consider the most important is to avoid a possible seizure by creditors.
Given that Spanish families are the most bankrupt incurred, this done has focused the eyes of the Spanish government to the extent that this issue affects the economy, which over recent years has not proven competitive with other European Union. The aim of this paper is to know handling is given to bankruptcy in Spain in order to get the reader to reach a substantial analysis of the issue and provide key concepts that allow a useful right advice and help, as this article is informative for the public in general.
People from all walks of life have serious problems that prevent them meet their financial commitments. Among the reasons identified as the cause of their economic problems are unemployment, divorce, accidents, health-related problems, misuse of credit and poor financial literacy in general. Among the resources they can turn these people is the right given by law to file a bankruptcy petition.
On October 17, 2005 came into force a new federal bankruptcy law that applies to all United States and the territories of Puerto Rico, Guam, Northern Mariana Islands and U.S. Virgin Islands. This law is known as the Law on Bankruptcy Abuse Prevention and Consumer Protection. This site in Spanish, on the new federal bankruptcy law is designed for all Spanish-speaking community not fluent in English and was difficult to find information on your rights under this law. The portal was created with the vision to be a training on the rights of consumers, especially among Spanish-speaking communities.
The loss of home ownership as a result of foreclosure will affect mostly minorities, including eight percent of recent Hispanic home buyers, according to a new study.
The report by the Center for Responsible Lending, a nonprofit research on the property, said that Latinos and blacks are most affected by the crisis in the market for sub-prime loans, which are those with the greatest impact on current increase in foreclosures (loss of property for nonpayment).