Liquidity Risk and Credit in the Financial Crisis
The 2007–08 financial crisis was the biggest shock to the banking system since the 1930s, raising fundamental questions about liquidity risk. The global financial system experienced urgent demands for cash from various sources, including counterparties, short-term creditors, and, especially, existing borrowers. Credit fell, with banks hit hardest by liquidity pressures cutting back most sharply. Central...
Macey’s Apologia for JPMorgan’s “Hedginess”
Macey’s Apologia for JPMorgan’s “Hedginess” By William K. Black Jonathan Macey is one of the world’s most vitriolic opponents of effective financial regulatory cops on the beat. Those regulatory cops on the beat are essential to prevent a Gresham’s dynamic. When cheaters prosper markets become perverse and bad ethics drives good ethics...
The Great Moderation, Forecast Uncertainty, and the Great Recession
The Great Recession of 2007-09 was a dramatic macroeconomic event, marked by a severe contraction in economic activity and a significant fall in inflation. These developments surprised many economists, as documented in a recent post on this site. One factor cited for the failure to anticipate the magnitude of the Great Recession was a form...
A Boost in Your Paycheck: How Are U.S. Workers Using the Payroll Tax Cut?
Over the past several months, there was a flurry of debate in Washington over the extension of the payroll tax cut. Many supporters of the tax cut—worth about $1,000 to a family earning the median income of slightly more than $50,000 a year—have cited its importance to the nation’s economic recovery, while opponents claim that...
ECB: EU Economy Strikingly Similar to 1990s Japan
Fascinating discussion from Bloomberg Briefings: The ECB appears to be understating the similarities between the weak growth outlook in Japan after its domestic asset bubbles popped in the early 1990s and that for the euro area in the present crisis. The performance of the Japanese economy 20 years ago was better than that of the...
Auto industry crisis and restructuring, 2008–11
Economic Perspectives Second Quarter, 2012 Edition Detroit back from the brink? Auto industry crisis and restructuring 2008–11 Thomas H. Klier, James Rubenstein While it is hard to say how much of the current auto sector recovery is attributable to government intervention, the ensuing restructuring of the Detroit Three has substantially changed the industry in...
The Fraud Recipe for CEO’s, Why Banks Hate Free Markets and Love Crony Capitalism, and the Dysmal Legacy of Mainstream Economists
Bill Black: The Fraud Recipe for CEO’s, Why Banks Hate Free Markets and Love Crony Capitalism, and the Dysmal Legacy of Mainstream Economists The selected notes below are from William K. Black’s presentation at the Modern Monetary Theory Summit in Rimini, Italy, in Febuary of this year. The audio is embedded in this post following...
Great Britain as a case study: which sticky price?
Steve Waldman was a software developer who became fascinated by finance and started writing about it. He is now a doctoral student in finance at the University of Kentucky. He blogs at Interfluidity. ~~~ Richard Williamson offers a report from the UK. Combining bits via Tyler Cowen and Williamson’s own excellent blog: I think there...
Do Exchange-Traded Funds Pose A Threat to Stability?
Exchange-Traded Funds Ozgur Emre Ergungor Cleveland Fed ETFs are one of the most successful financial innovations of the last few decades. As a new, rapidly growing, and increasingly complex financial instrument, ETFs might raise concerns about the risk they pose to financial stability. While they do not seem to pose a threat at this...
Web Presence is the New Black
Be daring and go transparent! Straight from the Paris & New York runways it’s time to be on trend and change into that digital shift! Advocate for your practice and our profession by embracing social media and fighting the “locked net monster.” Pump up your web presence and stand out from the crowd by being...
Rebutting Krugman & Invictus: The Rest of the Story
Rebutting Paul Krugman: The Rest of the Story By Chris Turner May 3, 2012 Residing in Kansas and working as a military pilot with 26 years of service, Chris Turner manages a private Hedge LLC, contributes guest articles to Doug Short at Advisorperspectives.com, and manages a database that determines S&P 500 Index Equivalent Fair...
Content Strategy Roadmap
A Content Strategy Roadmap
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