World Bank Financialization Strategy Serves Big Finance
The World Bank continues its proud tradition of making the world safe for rentiers, um, financiers.
Read more...Category Archives: Credit markets
The Delphic Oracle Was Their Davos: A Four-Part Interview With Michael Hudson: A New “Reality Economics” Curriculum Is Needed (Part 4)
How mainstream economics ignores the lessons from antiquity on the destructiveness of oligachies, and how early industrialists and business schools promoted anti-rentier, socialit policies.
Read more...The Media Endlessly Talks About Interest Rates—Are They Even an Effective Economic Tool at This Point?
Interest rates are a poor substitute for fiscal spending and as we’ve seen, over-reliance on monetary policy produces speculative booms and busts. More and more people recognize this formula isn’t working, but what will it take to change course?
Read more...The Delphic Oracle Was Their Davos: A Four-Part Interview With Michael Hudson: The Inherent Financial Instability in Western Civilization’s DNA (Part 3)
By John Siman, who is also the author of Part 1 and Part 2 in this series John Siman: It seems that unless there’s a Hammurabi-style “divine king” or some elected civic regulatory authority, oligarchies will arise and exploit their societies as much as they can, while trying to prevent the victimized economy from defending […]
Read more...The Delphic Oracle Was Their Davos: A Four-Part Interview With Michael Hudson: Mixed Economies Today, Compared To Those Of Antiquity (Part 2)
How mixed economies have mixed it up over time.
Read more...World Bank Financializing Development
Why having public sector development funds “leverage” private capital is a bad idea.
Read more...Wolf Richter: My Fancy-Schmancy “Fed Hawk-o-Meter” Ticks Down, Still Red-Lines. In Passing, Fed Plants Seed for Removing “Patient”
Not surprisingly, given economic weakness in Europe and China plus Trump trade war saber-rattling, the Fed seems less gung ho about the health of the economy than it was last summer.
Read more...China’s Mountain Of Debt Is About To Crumble
A worrying update about China’s corporate debt.
Read more...Reining in Leveraged Lending
Yves here. This article pre-supposes that readers understand that most leveraged lending is taking place as a result of private equity, via two routes. First, private equity funds use a great deal of borrowed money when buying companies. One of the biggest sources is so-called leveraged loans, which are normally originally made by banks, but […]
Read more...Is China’s Debt Crackdown Hitting California’s Commercial Real Estate Bubble?
China gets a cold and California real estate gets pneumonia.
Read more...The Natural Rate of Interest Is Anything But
Central bankers pursue a “neutral” rate that doesn’t exist.
Read more...MMT’s Opening
Another go at clearing up press and pundit misrepresentations of MMT.
Read more...China Won’t Be Taking Over
Why China is fragile and starting to look wobbly.
Read more...Wolf Richter: “Severe Collapse” of Home Prices Might Trigger a “Financial-Institution Crisis” in Australia: OECD Frets about the Banks
Australia looks to be on the verge of a nasty unwind of its housing bubble. A plunge would damage not only its banks but also retirement funds, since banks play an outsized role in the Australian stock market.
Read more...Global Uncertainty Is Rising, and That is a Bad Omen for Growth
The World Uncertainty Index reveals how uncertainty in the world has evolved over time, whether it is synchronised across countries, and how it compares across income groups and political regimes.
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