Hospitals in Distress: How the Economy has Affected Financing of Health Care

by Marianna Kiselev March 16 2010, 21:34
In the current financial crisis borrowers are finding it increasingly difficult to access capital for their investments. This is affecting one of the most important industries in our society, health care. Hospitals are a vital part of the health care industry and they are facing especially hard times in today’s economy. It is not a surprise to many people that hospitals are facing financial difficulties. Hospitals have consistently faced financial difficulties even in a good economy. However, the current credit crisis is affecting hospitals more than any other organization because of the high levels of uninsured seeking health care services, low reimbursement rates from Medicaid and Medicare, and staff shortages. Now more than ever before hospitals are facing increasing debt and are unable to gain more capital or refinancing their existing loans because it is more difficult to obtain credit. As a result, hospitals all over the country are filing bankruptcy and closing down. This is having a devastating affect on the access and quality of health care for many Americans. This article will examine why hospitals are facing financial difficulties and propose solutions to the problem by drawing upon examples of hospitals that are performing well in the current economy. [More]

Microcredit Part 2

by Lu Sun March 14 2010, 22:49
Microcredit Part 2 will explore a possible application of the microcredit system in the United States as well as problems that such an application may encounter and solutions to such issues. [More]

Regulation E: Are the problems with overdraft protection properly addressed?

by Frederic Deraiche February 22 2010, 01:12
As a result of the reform promised during the latest credit crisis, new rules are coming into effect controlling overdraft protection. This article will examine whether these new regulations address the problems that have been raised regarding overdraft protection, and whether the regulations will be sufficient to appropriately curtail its problematic aspects. Both modern and historical arguments will be considered in examining whether the regulation attempts to resolve the right issues and whether or not it is likely to be effective. [More]

2008/9 Financial Crisis: A Lot to Learn On Bailouts and Too Big To Fail Companies In Order To Draft New Regulation

by Gustavo Morales Oliver December 4 2009, 00:07
New regulation will come out of the 2008/9 crisis as is common after every major crisis (e.g. 1930’s meltdown and Enron’s falling, among others). What is most important is that such regulation should aim at terminating certain undesired market incentives: those which contributed to the development of the 2008/9 crisis, and the negative ones arising from the bailouts.

Along the path of reform, it is essential to understand that systemic risk, the 2008/9 systemic crisis and the bailouts are three different situations, with different causes and effects. Thus, they can be addressed separately to improve the overall situation, without need to exclusively seek for a unique “magic” solution.

Fine tuning over traditional financial regulation as well as exploring new ideas –such as limiting the size of Too Big To Fail Companies – will be required.

Along the path of reform, it is essential to understand that systemic risk, the 2008/9 systemic crisis and the bailouts are three different situations, with different causes and effects. Thus, they can be addressed separately to improve the overall situation, without need to exclusively seek for a unique “magic” solution. [More]

Microcredit - Part 1

by Lu Sun November 30 2009, 12:13
Part 1 of a 2 part paper discussing the value of mircrocredit and its possible applications in present-day America. In this first section, the reader will be introduced to the basic concepts and principles of microcredit, its history, and possible problems. [More]

Deficient in Deficiencies: The Potential Effects of the Refusal to Uphold Full-Recourse, Residential Real Estate Loans

by Frederic Deraiche November 3 2009, 02:06
This article discusses certain judges’ reluctance in granting deficiency judgments on residential foreclosures. Particularly, the effects categorical refusals to grant such judgments are considered. Potential effects on the lending market and available residential loans are identified addressed. Ultimately, a lack of deficiency judgments may lead to fewer loan products being available to homeowners and/or an increase in interest rates on full-recourse loans. In addition, the need for further research in the area is highlighted, particularly as it relates to the current economic situation. [More]

The Struggle for an Equal Opportunity to Bank

by Cari Silverman November 1 2009, 22:12
The United States is founded on the premise of equal protection. Equal protection is the scheme of legislated equality which encompasses notions of fairness, goodness, fraternity and social justice. It’s about maintaining a social stratification system which encourages any person to achieve their fullest potential by preventing the worst forms of social distinctions to arise. For years, members of our society, our elected officials and governing bodies have fought vigorously to implement programs and laws that promote this idea. In just our recent history, we have seen the passage of the Fair Housing Act, Title VII and The American’s with Disabilities Act. However, little has been done to combat the social inequalities that our financial institutions have created by the painstaking road blocks they have constructed to gain access to mainstream financial services. These hurdles have prevented valuable members of our society from gaining admittance to a world driven by ecommerce. They have been disallowed from reaping the myriad benefits that savings accounts and electronic banking afford to more financially endowed individuals. That was, until the Financial Service Centers of America (FiSCA) and NetSpend Corporation took it upon themselves to collaborate and create The All-Access NetSpend National Savings Program.[1] [More]

Looking East: The Road to Recovery

by John Lee September 21 2009, 16:10
I. Introduction

The current global recession has experts around the world searching for a solution in a place never looked to before. For the first time, Asian economies are leading the way out of a global economic slump. While the United States and Europe have pioneered past recoveries from world recessions, recovery seems to have already begun in Asia with China at the forefront. Massive government stimulus and expansionary fiscal policies have spurred growth in Asia with other strong economic indicators seemingly providing a foundation to a full-fledged recovery. Despite a drop in exports, Asian economies have offset the decline in this major source of revenue by slashing interest rates, keeping savings levels high, increasing infrastructure demand and harnessing the potential for expansion in domestic consumer demand. Many Asian nations are net creditors [1], with significant current account surpluses supplied by capital inflows over recent years. Asia now has a comparatively high ability to lend and borrow, as opposed to most Western nations which are running high trade and fiscal deficits. [2] However, the long-term sustainability of this potential recovery is questionable due to the huge amount of government-backed investment and generous policy measures that cannot continue indefinitely. In order for these Asian economies, in particular China, to return to normalized growth, private investment needs to increase as well as domestic consumption. No longer can the world wait for the Western consumer to jumpstart the global economy. Increasing Asian domestic consumption is a necessary driver for getting the world out of this current recession. [More]

An Option You Shouldn’t Pass Up

by Cari Silverman September 20 2009, 15:22

The nationwide credit crisis has made the “American Dream” unattainable to most citizens. With lenders instituting rigorous requirements making qualifying for mortgages nearly impossible. The record breaking foreclosures and unemployment have added fuel to the fire, putting pressure on homeowners to reduce their asking prices. Many owners have been forced to sell at far below market value, accepting a large loss on properties that when purchased had high potential for profitability. However, the resurgence of lease-option agreements, especially in areas where foreclosure rates are high, has sparked hope for many sellers and buyers. [1] [More]

Nationalized Treasure

by Patrick Schuette April 6 2009, 05:24
I. Introduction

On February 27, 2009, the United States government announced that it was taking measures that could result in it taking as much as a 36% equity stake in Citigroup, Inc.[1] This would make the federal government the largest shareholder in Citibank.[2] By converting $25 billion in preferred shares into common stock, the federal government hoped that the move would stabilize Citibank in a tumultuous market.[3] As a result of this move, a number of people have voiced a growing concern over the federal government taking further steps to nationalize other major financial institutions.[4] [More]

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