Category Archives: Federal Reserve

Rob Johnson and Robert Pozen on Too Big to Save

This discussion focuses on the problem presented by too big to fail institutions and suggests remedies. Enjoy!

The Most Stunning (and Uncommented on) Revelation in Too Big Too Fail

Although I read it two months ago, I haven’t made much in the way of comments on Andrew Ross Sorkin’s Too Big Too Fail, figuring the ground was well plowed by others. However, the bit that I found the most shocking has not gotten the notice it deserves, so I am writing it up now. […]

“Fire Geithner Now!”

By L. Randall Wray, Professor of Economics at the University of Missouri-Kansas City, Research Director with the Center for Full Employment and Price Stability and Senior Research Scholar at The Levy Economics Institute, who writes for New Deal 2.0. There is a growing consensus that it is time for President Obama to fire Treasury Secretary […]

Hawks at the Fed Warn Re Inflation, Bubbles

Although investors have been worried about the Fed’s exit strategy for some time, you wouldn’t see much evidence if you looked at the markets. While gold prices are an exception, the stock market appears to reflect optimism about recovery (although cynics would say it really is a function of liquidity, not fundamental views). Either premature […]

Roubini v. Gross on Outlook for 2010

I saw this item on RGE Monitor (Nouriel Roubini’s blog/economic analysis website) and was gobsmacked: Greetings from RGE! A couple months ago, in a widely read FT op-ed, Nouriel Roubini warned that the “mother of all carry trades,” one funded in U.S. dollar denominated debt, could pump up asset bubbles around the world… When uncovered […]

Limiting the destruction wrought by irrational exuberance in a one-party state

By Edward Harrison of Credit Writedowns As a writer, Matt Taibbi is a lot more vitriolic than I am. He curses, makes some pretty over-the-top personal attacks, and divines a policymaker’s intent where I don’t think he can. But, this goes mostly to style. Substantively speaking, he has a lot to say and we should […]

“The Once and Future Fed Policy Error?”

By Richard Alford, a former economist at the New York Fed. Since then, he has worked in the financial industry as a trading floor economist and strategist on both the sell side and the buy side. Monetary policy is center stage as the Fed pursues highly accommodative policies in order to generate a recovery and […]

Ambrose Evans-Pritchard: Apocalypse 2010

Ambrose Evans-Pritchard is nothing if not decisive in his views, and has a undisguised fondness for the bearish perspective. But he was correct on the 2008 inflation/commodities headfake, saying repeatedly that deflationary forces would prevail when that was decidedly a minority view. He is also a Euro-skeptic, and I’m less comfortable with that position. The […]

“2010: Foreseeable and Unforeseeable Risks ~ The Room For Policy Error is Enormous”

By John Bougearel, author of Riding the Storm Out and Director of Financial and Equity Research for Structural Logic Policymakers managed to extinguish a financial panic in 2008-09 by March 2009. This rescue operation allowed the broad U.S. stock market as measured by the SP500 to rally nearly 70%. Extinguishing the panic was to be […]

“What’s in Store for 2010”

By Bruce Krasting, a former foreign exchange and derivatives trader and hedge fund manager. Mohammad said, “One cannot foretell the future”. I think he was on to something. What looks predictable rarely happens. There are always surprises. I have been tripped up so many times. The following are not predictions of things that will happen. […]

“Body Count From Goldman Actions Crosses Into Criminal Territory”

By Thomas Adams, at Paykin Krieg and Adams, LLP, and a former managing director at Ambac and FGIC. Readers may have noticed Janet Tavakoli’s recent article at Huffington Post on Goldman Sachs and AIG. While much of it covers territory that Yves and I already wrote about previously, Ms. Tavakoli stops short of telling the […]

WaPo Shreds Fed’s Pre-Crisis Performance as Regulator

An intriguing piece is up at the Washington Post, “Fed’s approach to regulation left banks exposed to crisis,” not simply because it does a good job of finding and analyzing some case studies of the Federal Reserve’s failures at a bank regulator, but also because in the critical opening paragraphs, it launches a full bore […]

Spitzer, Partnoy, Black Call for AIG Open Source Investigation (and Goldman Implications)

An op-ed in the Sunday New York Times by former investigators and prosecutors Eliot Spitzer, Frank Parnoy, and William Black calls for AIG to put non-privileged e-mails, accounting documents, and financial models on line to allow for an “open source” investigation. The questions they want to examine include: As fraud investigators, we would like to […]

Bernanke Confirmation Headwinds Increasing

The party line is that Ben Bernanke’s confirmation for a second term as Fed chief is a shoe-in, although he might face an unseemly amount of roughing up, like having to step down briefly if the senators who plan to put a hold on his vote succeed in delaying it beyond the end of January. […]

Mark Thoma: Libertarians and populists versus Bernanke

Edward Harrison here. Here is a video clip of mark Thoma talking about the Federal Reserve Chairman’s chances of re-appointment. He says time is not on Chairman Bernanke’s side. If you saw the Ron Paul video at Credit Writedowns yesterday, you could see what’s happening. I don’t have a strong view, although I believe most […]