Banks Once Burned, Now Twice Shy About Taking on More Takeover-Deal-Related Junk Debt
Banks have gotten a painful reminder that originating risky assets like junk bonds and loans can leave them holding the bag.
Read more...Category Archives: Federal Reserve
Negative Interest Rate Conundrum
Why are central banks and governments opting for their unusual negative interest rate stance?
Read more...Mirabile Dictu: Lead Story at Bloomberg Gives a Thumbs Up to MMT
Bloomberg gives a fairminded and reasonably detailed report on MMT.
Read more...Negative Rates, Negative Reactions
A new survey suggests that negative rates will be counterproductive. Consumers will not spend more, as central banks wish, but will hoard.
Read more...Michael Hudson Discusses the Federal Reserve and the Global Fracture
Explaining how the Federal Reserve and central bank policies like QE, saved the banks at the expense of wrecking the real economy.
Read more...Randy Wray: American Colonial Currency (Debt Free Money, Part 4)
The American Colonial experience with note issue is consistent with what MMT has been saying for the past quarter century.
Read more...Ex-Goldmanite , Now Minneapolis Fed President Neel Kashkari Calls for “Transformative” Changes to Banks, Ending TBTF, Even Regulating Them as Utilities
Astonishingly, Neel Kashkari really might mean a fair bit of his bold financial services industry reform talk.
Read more...Has the Crash of the Global Financial Markets Begun?
Is “crash” the right word to describe the Mr. Market’s rattled nerves?
Read more...Money and Banking – Treasury and Central Bank Interactions
The post studies how the Fed is involved in fiscal operations and how the U.S. Treasury is involved in monetary-policy operations. The extensive interaction between these two branches of the U.S. government is necessary for fiscal and monetary policies to work properly.
Read more...Satyajit Das: Age of Stagnation or Something Worse?
In The Age of Stagnation, author Satyajit Das has shifted from his usual wry detachment to a sense of foreboding.
Read more...Eurobanks: The Probable Point of Failure as Systemic Stress Rises
Why Eurobanks are the most likely fracture point if current economic stresses continue.
Read more...Former Central Banker William White on the Failure of QE, Danger of Negative Interest Rates
Former Bank of International Settlements chief economist William White criticizes central bank policies sharply, particularly negative interest rates.
Read more...Money and Banking – The Fed and Monetary Policy
A very readable, information-rich post on what the Fed does and does not do, with emphasis on the nitty-gritty of monetary policy. If you are time-pressed, read the last item in the FAQ first, which is a terse item-by-item debunking of widely made, inaccurate statements about the Fed.
Read more...Why the Market Freakout About Bank Stocks is Well Warranted
Bad loans are not the only reason to worry about banks. ZIRP and negative interest rates will bleed them to death, and Eurobanks are at real risk of bank runs.
Read more...Positive Money in Action
Positive Money boosters have failed to consider (or perhaps have failed to publicize) is that it would necessitate draconian controls to prevent the creation of private credit.
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