Another Perspective
Two weeks ago, before Jamie Dimon’s thoughtful diversion, Charlie Munger of Berkshire Hathaway instructed viewers of CNBC that “civilized people don’t buy gold, they invest in productive businesses”. Munger was right in that civilized people invest in productive businesses and was right to imply that gold is a non-productive rock, but, in our humble opinion,...
Michael Hudson on Greenspan’s Hackery
This is a short clip and I am sure you'll enjoy it.
Fed Foe Ron Paul Breakfasts With Bernanke at Central Bank
Republican presidential hopeful Rep. Ron Paul certainly wants to end the Federal Reserve. But he also has to eat breakfast.
Quelle Surprise! Fed Defends Incompetent Bank Management Against Investors
Reader Hecht pointed out a new piece by Steven Davidoff at the New York Times' Dealbook, illustrating the lengths to which the Fed will go to defend incumbent bank managements.
And the latest US bank holding companies are…
… a Chinese sovereign wealth fund, its bank-investing subsidiary, and China’s largest bank by assets (which is ICBC).Click image for the full Fed approval doc:CIC,...
Government Options To Solve Credit Crisis/Debt Problem
I love this chart from DoubleLine’s Jeff Gundlach NYC presentation last month, with the caveat that much of these attempts were also to rescue the banking system and stimulate a post credit crisis economy: > Click to enlarge: Source: Getting There, By DoubleLine > You may assume he was not a fan of the Bailouts...
The era of the ‘negative money multiplier’ – Part 2
As we discussed in Part 1 of this post, Manmohan Singh and Peter Stella believe the system is in the grips of a negative money multiplier effect, because banks have been depending...
The era of the ‘negative money multiplier’ – Part 1
Or, why hyperinflationists are wrong. And why everything you were ever taught about the money multiplier is not applicable to the here and now.The following observation comes...
Worker Skills and Job Quality
Worker Skills and Job Quality By David Neumark and Rob Valletta FRBSF Economic Letter 2012-13 April 30, 2012 Some observers have argued that the nation’s high unemployment rate during the current recovery stems partly from widespread mismatches between the skills of jobseekers and the needs of employers. A recent San Francisco Federal Reserve Bank...
Is The Neutral Funds Rate Still Negative?
During Bernanke’s press conference last week, he was asked the following question: Q: Greg Ip of The Economist. First, assume that you were not constrained by the zero nominal bound right now. What would the federal funds rate be, even if it were a negative number? And do you believe that you are at an...
Bank Chiefs Take Complaints To Fed
Top executives from six major U.S. banks on Wednesday discussed concerns over new industry regulations and the central bank's recent "stress tests" with Federal Reserve Gov. Daniel Tarullo, the Fed said in a summary of the meeting.
Don’t End the Fed — Mend the Fed
Don’t End the Fed, Mend the Fed April 30, 2012 by Paul Kasriel Congressman Ron Paul has written a book entitled End the Fed. I have to admit that I have not read his book. But I have read many of Congressman Paul’s excellent (in my opinion) essays on monetary theory and policy. Based...
