Your Humble Blogger Speaks on RT: “Banks Are Still Getting Away With a Lot”
I had fun on this interview…
Read more...Category Archives: Credit markets
How Serious is China’s Shadow Banking/Wealth Management Products Problem?
George Soros has caused a bit of a frisson by calling China the greatest risk to the global economy. The Chinese shadow banks are the trouble spot to watch.
Read more...The Misdirected Outrage Over The Wolf of Wall Street
Martin Scorsese’s film about a boiler-room stockbroker who managed to reach the major leagues of financial services industry swindling, The Wolf of Wall Street, has garnered both strong box office sales and heated denunciations.
Read more...Ilargi: The Taper And The China Credit Power Struggle Squeeze
Yves here. We described the funding mismatch with Chinese wealth management products during the first liquidity crunch earlier in the year, but given that most readers aren’t familiar with these structures, it’s good to have another summary as to how they work and more discussion of why they pose a risk to the Chinese economy. They are troublingly similar to structured investment vehicles, which were one of the detonators of the credit crisis in the US and UK.
Read more...Philip Pilkington: Interest Rates and Animal Spirits – A Response to JW Mason
Clarifying what believing in risk versus uncertainty means for how you view the role of interest rates.
Read more...Essays in Monetary Theory and Policy: On the Nature of Money (Continued)
Yves here. I thought this essay on money was useful in and of itself, and it also contains a useful primer on the views of major schools of thought in orthodox economics.
Read more...Wolf Richter: What Happens Next, Now That The 10-year Treasury Yield Hit The Psycho-Sound Barrier Of 3%
Yves here. As Wolf describes, in our brave new work of super-low interest rates, the 10 year Treasury breaching 3% was regarded with fear and loathing by the officialdom. Now with the Fed’s reassurances that the Fed funds rate will remain at just about zero for the foreseeable future, the stock market has popped the Champagne. But will the impact of the withdrawal of support for bond prices impact stocks sooner than the current rally would have you believe?
Read more...Banks Squealing Over Volcker Rule Exposing Their Dirty Laundry. Will Regulators Capitulate?
By George Bailey, who has worked in senior compliance roles at Big Firms You’ve Heard Of and is also a member of Occupy the SEC
The first few legs in the in the Volcker Rule repeal relay race are now under way.
Read more...Amar Bhidé on How Following Hayek Leads to Regulating Banks Like Utilities, Looking Askance at Liquidity and Securitization
I highly recommend this short interview by John Authers of the Financial Times with Amar Bhidé, a professor at Tufts, in which he argues that a proper reading of Friedrich Hayek would lead to considerable skepticism about whether most of the changes in finance over the last three decades actually represent progress.
Read more...Yes Virginia, Obama and the Democrats Are Mussolini-Style Corporatists, Just Like the Republicans
Reader dSquib flagged a “bizarre” article by Mike Konczal in the New Republic titled, “Corporatism” is the Latest Hysterical Right-Wing Accusation: The secret history of a smear.” dSquib seemed quite perplexed that anyone would deem calling Obama a corporatist, which as we’ll demonstrate is patently true, a smear.
Read more...Banks Start Volcker Rule Blame Game
Nothing like being able to use something in the headlines to hide your real behavior. And even better if you can get a banking stalwart columnist to run PR for you.
Read more...Michael Hudson: Trade Advantage Replaced by Rent Extraction
An interview with Michael Hudson, a research professor of Economics at University of Missouri, Kansas City, and a research associate at the Levy Economics Institute of Bard College, on the Renegade Economists radio/podcast
Read more...JP Morgan, Not Satisfied with Profitable WaMu Acquisition, Sues FDIC to Extract More
If you are Jamie Dimon, a good deal is apparently never good enough.
Read more...Wolf Richter: Fear And Trembling In Muni Land
Municipal bond investors, a conservative bunch who want to avoid rollercoaster rides and cliffhangers, are getting frazzled. And they’re bailing out of muni bond funds at record rate, while they still can without losing their shirts.
Read more...Ragnarok – Iceland and the ‘Doom of the Gods’
Iceland is widely portrayed as a post-bubble success story, but the reality is more conplex.
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