Frances Coppola: Rethinking Government Debt and Monetary Sovereignity
Debunking the uniformed and regularly hysterical mainstream treatment of government debt and deficits.
Read more...Category Archives: Credit markets
Chris Hedges and Leo Panitch: We are All Greeks Now
Leo Panitch and Chris Hedges discuss how nature of imperialism today is financial power.
Read more...Corbynomics 101: A Guide to People’s QE (PQE)
Why the three big charges commonly made against Corbyn’s “People’s Quantitative Easing” or PQE, are all wet.
Read more...Perry Mehrling: What Does Repo Do? And Can We Do Without It?
Repo is the system that failed during the financial crisis, leading the Fed to ride to banks’ rescue. Is repo any safer now?
Read more...Credit Rating Agencies and Brazil: S&P as Neoliberal Enforcer
Mind you, the rating agencies are far from the only neoliberal enforcers as far as emerging economies are concerned. But it is nevertheless instructive to compare an official rationale with data.
Read more...Nomi Prins: Mexico, Federal Reserve Policy and Danger Ahead for Emerging Markets
Mexico’s problems could again ripple through Latin America where eroding confidence, volatility, and US dollar strength are already hurting economies and markets.
Read more...Nomura Wins Sad-Sack Bank of the Week After Overpaying on Court Loss to FHFA, Having Bond Traders Indicted
So yesterday was a bad day if you were a Japanese bank with stubborn executives.
Read more...Why Tax Havens Will Be at the Heart of the Next Financial Crisis
Examining an excellent in-depth investigation by Reuters into global financial stability issues, and the role of tax havens in this giant game of pain and plunder.
Read more...Leveraged Bubbles
The risk that asset price bubbles pose for financial stability is still not clear. Drawing on 140 years of data, this column argues that leverage is the critical determinant of crisis damage. When fuelled by credit booms, asset price bubbles are associated with high financial crisis risk; upon collapse, they coincide with weaker growth and slower recoveries. Highly leveraged housing bubbles are the worst case of all.
Read more...Michael Hudson: Smoke and Mirrors of Corporate Buybacks Behind the Market Crash
Hudson clearly differentiates what is happening in the Chinese versus the US markets, with emphasis on the role of corporate buybacks here.
Read more...Perry Mehrling: No One Has a Good Idea of How to Keep the Fed From Having to Rescue Mr. Market Again
Perry Mehrling’s post on the Fed’s progress in dealing with future market crises is damning, despite its “give everyone credit for what they have done” recap.
Read more...A Pragmatic Approach to External Debt: The Write-Down of Germany’s Debts in 1953
Greece’s crisis has invited comparisons to the 1953 London Debt Agreement, which ended a long period of German default on external debt. Unfortunately for Greece, the motivations driving the 1953 agreement are nearly entirely absent today.
Read more...Perry Mehrling: The Fuss about Market Liquidity
I am SO glad to see this post appear. It’s annoying to see investors and banksters whine that they want more liquidity, as if that were a right.
Read more...“@ Hillary Clinton: How does your student loan debt make you feel? Tell us in 3 emojis or less.”
The above tweet is real and is from Hillary Clinton’s official twitter account. It is very difficult to express how appalling this sentiment is. It represents much of what’s wrong with American politics in our current moment.
Read more...Greek Debt Sustainability: The Devil is in the Tails
The debate over Greek debt sustainability is muddied by the fact that different analysts use different definitions. But once you use realistic assumptions, as in “tails risks” are actually pretty likely, Greek debt is obviously not “sustainable”.
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