Money and Banking – Part 3
How the Fed balance sheet works and why what we, the public, consider to be money is a debt of the Federal Reserve. Part 3 of a series.
Read more...Category Archives: Federal Reserve
Funds Hold Most Cash Since GFC
Fund manager cash holdings are at crisis-bottom levels, typically a sound bullish indicator. But will history predict the future this time?
Read more...Investment Manager GMO Debunks Mythology of “Sound Finance,” or Deficit Hawkery
Yves here. Sometimes it is best to let things speak for themselves. In that spirit, I am embedding a very important paper by the well-respected investment management firm GMO which debunks the tenets of “sound finance,” meaning the claim that governments need to balance their budgets. I expect to be referring to it regularly, particularly […]
Read more...Money and Banking – Part 2
How the Fed balance sheet works and why what we, the public, consider to be money is a debt of the Federal Reserve.
Read more...Marshall Auerback: What US Treasury Yields Might Be Signalling
Bond yields warn of deflation. How real is this worry?
Read more...Dollar Dominance: Deconstructing the Myths and Untangling the Web
It is not dollar hegemony that rules the world, but the global financial system which gives the dollar its place of privilege.
Read more...Ilargi: 2016 Is An Easy Year To Predict
Deflation will become an even more powerful and destructive force in 2016.
Read more...Randy Wray: Debt-Free Money and Banana Republics, Part II
More discussion of the problems with the “debt-free money” construct, to the extent that it can even be called a construct.
Read more...The Fed’s New “Operation Twist”: Twisted Logic for Bank Profits at the Expense of the Real Economy
How did Janet Yellen and the Federal Reserve justify their rate increase now, despite strong signs that there is little economic basis for doing so?
Call this an exercise in twisted logic, plain and simple.
Read more...Timothy Geithner Corrupting Youth, Um, Telling His Version of the Crisis
In case living through the crisis and its aftermath wasn’t bad enough, you can hear Timothy Geithner’s version of events…at your expense.
Read more...Wolf Richter: “Distress” in US Corporate Debt Spikes to 2009 Level
Experts expected bankruptcies of highly levered borrowers in 2013-2014, but cheap refis under ZIRP bailed them out. We are again at peak leverage, but this time, there’s no prospect of lower rates to provide a rescue.
Read more...Banks to Have Fed Dividends Clipped to Pay to Fill Potholes; JPMorgan, Bank of America the Biggest Losers
Banks suffer a symbolically important loss as Congress plans to whack their dividends from the Fed.
Read more...Wolf Richter: Fed Trips over Eye-Popping Commercial Real Estate Bubble, Accidentally Looks, Sees “Early Signs” of “Search for Yield”
Commercial real estate has been on a tear that looks to have much more to do with cheap money than real economy prospects.
Read more...Liquidity Traps as Black Holes
Beware! Liquidity traps are even nastier than you thought.
Read more...Foreign Banks Such as Deutsche Using Variant of Lehman “Repo 105” Balance-Sheet Tarting Up Strategy
Foreign Banks Such as Deutsche Using Variant of Lehman “Repo 105” Balance-Sheet Tarting Up Strategy
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