Until the results of new stress tests are known, the uncertainty principle calls for extreme caution in the regulator’s approach to the capital adequacy of systemically important banks (and indeed of banks in general).
Read more...Why using credit as an economic remedy evenutally does more harm than good.
Read more...An explanation of the mechanics of Federal spending, with emphasis on the role of the Fed and Treasury.
Read more...WSJ says banks can no longer determine who is credit-worthy using existing models – more COVID-19 fallout, this of uncertain magnitude.
Read more...Michael Hudson explains why debt cancellation and turning banks into utilities is the only sound response to the cornacrisis.
Read more...The Governor of the Bank of England had a major “put foot in mouth and chew” episode.
Read more...Keeping tabs on the wobbly state of EU banks.
Read more...Yves here. Richard Murphy’s observations about QE hitting its limits are clearly relevant to the US. Sadly, things will have to get worse before ideas like a job guarantee or Green New Deal-type work schemes even get a hearing. By Richard Murphy, a chartered accountant and a political economist. He has been described by the Guardian […]
Read more...A new tsunami of bad debts washes ashore in Italy while banks are still struggling with the debris from the prior deluge of bad debts.
Read more...No, collateralized loan obligations are not about to wipe out banks, and Frank Partnoy should have focused on real risks, like destruction of productive capacity.
Read more...CalPERS latches on to new, really bad investment ideas.
Read more...The European Union has not reached a “Hamiltonian moment.” Its plans are too little, too late, hamstrung by institutional barriers to economic recovery.
Read more...David Cameron promised to stop scammers and kleptocrats hiding behind British shell companies. But almost one in ten UK firms still do not declare ‘persons of significant control’
Read more...Michael Hudson gives a detailed, if sobering, account of the outlook for the economy.
Read more...This is part 7 of my ongoing coverage of the Federal Reserve’s Coronavirus actions.
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