Comments on: Fed’s Krozner Talks Down Rate Cuts; Goldman Talks Up Recession http://www.nakedcapitalism.com/2007/11/feds-krozner-talks-down-rate-cuts.html Sun, 22 Nov 2009 01:21:03 -0500 http://wordpress.org/?v=2.8.4 hourly 1 By: Anonymous http://www.nakedcapitalism.com/2007/11/feds-krozner-talks-down-rate-cuts.html#comment-1712 Anonymous Sat, 17 Nov 2007 14:44:00 +0000 http://www.nakedcapitalism.com/2007/11/feds-krozner-talks-down-rate-cuts-goldman-talks-up-recession/#comment-1712 Great blog, thank you...<br/>Sounds like the GS estimate is a global number. What would be the percentage decrease in global lending on that basis? Great blog, thank you…
Sounds like the GS estimate is a global number. What would be the percentage decrease in global lending on that basis?

]]> By: Anonymous http://www.nakedcapitalism.com/2007/11/feds-krozner-talks-down-rate-cuts.html#comment-1711 Anonymous Sat, 17 Nov 2007 14:28:00 +0000 http://www.nakedcapitalism.com/2007/11/feds-krozner-talks-down-rate-cuts-goldman-talks-up-recession/#comment-1711 Right... financial firms can recap/dilute returns to shareholders or cut profits returns to shareholders and/or cut expenses = bonuses (e.g. 2006 bonuses NYC $26bn London $42bn) rather than demand that returns to those not responsible for the crunch pay up though higher interest margins, more expensive credit, higher inflation and cheaper dollar. Right… financial firms can recap/dilute returns to shareholders or cut profits returns to shareholders and/or cut expenses = bonuses (e.g. 2006 bonuses NYC $26bn London $42bn) rather than demand that returns to those not responsible for the crunch pay up though higher interest margins, more expensive credit, higher inflation and cheaper dollar.

]]> By: EEngineer http://www.nakedcapitalism.com/2007/11/feds-krozner-talks-down-rate-cuts.html#comment-1707 EEngineer Sat, 17 Nov 2007 03:18:00 +0000 http://www.nakedcapitalism.com/2007/11/feds-krozner-talks-down-rate-cuts-goldman-talks-up-recession/#comment-1707 The sharks circle Northern Rock:<br/>http://www.ft.com/cms/s/1bd89008-947e-11dc-9aaf-0000779fd2ac.html The sharks circle Northern Rock:
http://www.ft.com/cms/s/1bd89008-947e-11dc-9aaf-0000779fd2ac.html

]]> By: pjfny http://www.nakedcapitalism.com/2007/11/feds-krozner-talks-down-rate-cuts.html#comment-1702 pjfny Fri, 16 Nov 2007 21:23:00 +0000 http://www.nakedcapitalism.com/2007/11/feds-krozner-talks-down-rate-cuts-goldman-talks-up-recession/#comment-1702 roubini is turning even more bearish!<br/><br/>http://www.rgemonitor.com/blog/roubini/227330 roubini is turning even more bearish!

http://www.rgemonitor.com/blog/roubini/227330

]]> By: alex.forshaw@gmail.com http://www.nakedcapitalism.com/2007/11/feds-krozner-talks-down-rate-cuts.html#comment-1700 alex.forshaw@gmail.com Fri, 16 Nov 2007 18:11:00 +0000 http://www.nakedcapitalism.com/2007/11/feds-krozner-talks-down-rate-cuts-goldman-talks-up-recession/#comment-1700 Sorry. The first sentence was supposed to read, "Stupid question: ..." Sorry. The first sentence was supposed to read, “Stupid question: …”

]]> By: Anonymous http://www.nakedcapitalism.com/2007/11/feds-krozner-talks-down-rate-cuts.html#comment-1699 Anonymous Fri, 16 Nov 2007 18:10:00 +0000 http://www.nakedcapitalism.com/2007/11/feds-krozner-talks-down-rate-cuts-goldman-talks-up-recession/#comment-1699 The Fed is reading a larger dimension of components of the economy where inflation, Balance of payment are far from absent and Goldman reads the potential restrictive constraints on balance sheets expansion, the main real lenders capacities are left intact as many of them see their liquidity ratios to have increased they can easily compensate for the limping flock in a downwards economic cycle.<br/>Banks like Goldman should try a capital increase (that would be a good market price test for their shares) The Fed is reading a larger dimension of components of the economy where inflation, Balance of payment are far from absent and Goldman reads the potential restrictive constraints on balance sheets expansion, the main real lenders capacities are left intact as many of them see their liquidity ratios to have increased they can easily compensate for the limping flock in a downwards economic cycle.
Banks like Goldman should try a capital increase (that would be a good market price test for their shares)

]]> By: alex.forshaw@gmail.com http://www.nakedcapitalism.com/2007/11/feds-krozner-talks-down-rate-cuts.html#comment-1697 alex.forshaw@gmail.com Fri, 16 Nov 2007 17:51:00 +0000 http://www.nakedcapitalism.com/2007/11/feds-krozner-talks-down-rate-cuts-goldman-talks-up-recession/#comment-1697 Stupid question. From the Fed's perspective, why does it matter what the overall number is?<br/><br/>The Cliff Notes of the doves' argument, as I understand it, is that money/credit deserves more aggressive subsidies because it has the biggest multiplier effect of any market. How does that make any sense?<br/><br/>It's like having a tumor in your brain (the most sensitive organ) versus a tumor in any other organ, and saying that the brain tumor shouldn't be chemo'ed because the chemotherapy would have huge knock-on effects. It makes no sense. If you wait, and hope the tumor goes away, chances are that in a disproportionately short amount of time, you will be faced with the same question, but it will be more dire, and the remedy will be less likely to succeed, and certain to be more painful.<br/><br/>There are certainly other reasons why a weak dollar might be desirable, but the Mishkin argument makes zero sense to me. Stupid question. From the Fed’s perspective, why does it matter what the overall number is?

The Cliff Notes of the doves’ argument, as I understand it, is that money/credit deserves more aggressive subsidies because it has the biggest multiplier effect of any market. How does that make any sense?

It’s like having a tumor in your brain (the most sensitive organ) versus a tumor in any other organ, and saying that the brain tumor shouldn’t be chemo’ed because the chemotherapy would have huge knock-on effects. It makes no sense. If you wait, and hope the tumor goes away, chances are that in a disproportionately short amount of time, you will be faced with the same question, but it will be more dire, and the remedy will be less likely to succeed, and certain to be more painful.

There are certainly other reasons why a weak dollar might be desirable, but the Mishkin argument makes zero sense to me.

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