Welcome

Welcome to the learning community designed and managed by Ms. Rita Callahan, instuctor of economics and mathematics. Most of you are current or former students from my classes. I trust you will enjoy this attempt to connect our studies to the real world. From time to time I will make observations on my experiences and things I read. I hope you will comment and add your observations as well.


There is much to learn form others, especially those whose experiences may differ from our own. As I mention elsewhere in this blog, this is my attempt to incorporate 21st century learning formats into the educational experience of my students. Perhaps this will invite some interesting discussions.





Wednesday, July 7, 2010

Walmart to make business loans?


While browsing my Washington Post web news this morning, I read that Walmart is making plans to enter the lending market. Students in an earlier Money and Banking course will remember our debate based on Walmart's efforts to compete in the banking industry. At that time, the consensus was that it was unwise to allow the king of retail discounting to enter such a sophisticated and hallowed realm.
Well, now we flash forward to 2010. Banks have almost free money from the Federal Reserve and based on recent experience and perhaps major risk aversion, they are being mighty stingy with their loans. Does this change the American perspective enough to change our position? If Walmart is willing to lend; businesses are in need of loans; and the macroeconomy would benefit, do we want Walmart to fill this gap?
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