Category Archives: Credit markets

Hensarling’s “Market Regulation” Replacement to Dodd Frank Proves He Does Not Understand Banking

Yves here. Steve Waldman wrote a definitive post in 2009, Capital can’t be measured, on a core issue that Black discusses here. A key section: So, for large complex financials, capital cannot be measured precisely enough to distinguish conservatively solvent from insolvent banks, and capital positions are always optimistically padded. Given these facts, and I […]

Banks Rebel Against Negative Interest Rates

Banks have had it with negative interest rates and are starting to push back.

Steve Keen: Zombie-to-Be Economies and the Walking Dead of Debt Include China, South Korea, Canada, Finland

Steve Keen’s macroeconomic model allows him to identify zombies-in-the-making. It’s not pretty.

Wall Street Journal Tallies DoJ and SEC’s Pathetic Record in Tackling Wall Street Crime

The officialdom continues to defend the half-hearted effort by the DoJ and SEC to pursue financial services industry misconduct.

IMF Not Funding July Greece Deal, Still Wants Serious Debt Relief Before Committing New Dough

The IMF has not given up on debt relief for Greece, but due to the upcoming Brexit vote, is holding off on the fight until fall.

Unsealed Documents Reveal Former White House Officials Violated Fannie/Freddie Conservatorship Rules, Apparently to Advance Bank-Enriching “Reforms”

The Administration has refused to turn over over 12,000 documents in a lawsuit against how the government operated Fannie and Freddie in their conservatorship. The major bone of contention is that Treasury stripped them of all profits, which damaged the remaining private shareholders. But the unsealing of a small batch of government records shows why […]

Wolf Richter: Business Loan Delinquencies Spike to Lehman Moment Level

While consumer credit card and mortgage delinquencies are tame, business loan delinquencies have taken a big turn for the worse.

Hard Landing Coming Soon? Chinese Officials Set Off Red Alert on Debt, Urge Serious Measure to Contain It

Chinese officials sent a serious warning about ending debt growth. If they are serious, the shock waves will engulf not just China but also the global economy.

Money and Banking – Financial Crises

The mechanics of financial crises and how an economy gets there.

Inflation Targeting and Neoliberalism, Part 2

Why inflation targeting is a destructive practice.

Satyajit Das: “Stay in the Name of Reform” – The Fed and ISDA’s Derivative Bankruptcy Initiative

Why a proposal to “stay” derivatives termination in the event of bank bankruptcy is inconsequential and avoids bigger questions about the use of derivatives and failure to rein in risks in this market.

Inflation Targeting and Neoliberalism

An interview on inflation targeting and its implications.

Don Quijones: Wrath of Draghi Hits Germans Who Refuse to Blow Their Savings

Draghi plans to beat savers until morale improves.

Lessons from Iceland, Where Offshore Created an Onshore Bubble Free of Rules and Regulations

In Iceland, the rapid growth of offshore, meaning tax evasion, along with harmful, even criminal, practices produced a massive boom and bust.

Consumer Financial Protection Bureau to Put End to Mandatory Arbitration for Consumer Loans, Credit Cards

Ding, dong, the witch of mandatory arbitration is (on its way to being) dead.