Wolf Richter: The “Housing Crisis” in San Francisco Strangles Demand
San Francisco housing bubble buckles under its own lopsidedness.
Read more...Category Archives: Federal Reserve
How the Fed Promoted “Financial Dominance” and Shadow Banking by Promoting Repo
Yves here. This is a very important post, and sadly I’m not providing it with the introduction and commentary it warrants because I am scrambling to get organized to get out of town. By Daniela Gabor is associate professor in economics at the University of the West of England, Bristol. Originally published at the Institute […]
Read more...Big Wall Street Firms Make Lame Excuse for Volcker Rule Non-Compliance, Ask for Additional Five Year Extension
Big Wall Street firms like Goldman and Morgan Stanley offer “dog ate my homework” excuses for failure to comply with the Volcker Rule.
Read more...Economists Mystified that Negative Interest Rates Aren’t Leading Consumers to Run Out and Spend
It been remarkable to witness the casual way in which central banks have plunged into negative interest rate terrain, based on questionable models. Now that this experiment isn’t working out so well, the response comes troubling close to, “Well, they work in theory, so we just need to do more or wait longer to see […]
Read more...Dumb Money Watch: ZIRP-Starved Insurers Beefing Up in Lending as Banks Exit the Pool
Insurers are going long risk at one of the worst possible junctures.
Read more...Do “Unconventional” Monetary Policies Work?
A skeptical look at unconventional monetary policies: quantitative easing, ZIRP, and negative interest rates.
Read more...The Global “New Normal” Is Not New– But It Is Still a Real Concern
Why the “new normal” is a sign that capitalism is running out of options.
Read more...Global Money: A Work in Progress
Bagehot outlined some of the requirements for global money. Are we closer to a solution?
Read more...Star Wars: The Fed Awakens
A short take on the Fed’s recent antics.
Read more...Wolf Richter: What Makes This Jobs Report So Truly Ugly?
Last week’s job report was not only disconcerting in and of itself, but it also bodes ill for labor market prospects.
Read more...Helicopter Money: The Illusion of a Free Lunch
Does helicopter money come with a hidden price tag?
Read more...Inflation Targeting and Neoliberalism, Part 3
Yves here. In a bit of synchronicity, this post continues the theme of Dipherio’s podcast over the weekend on NAIRU, describing how other central banks around the world look at the issue of what inflation rate to try to achieve and why. I’m a little surprised that Epstein did not mention how the Fed kept […]
Read more...Economics for the Rest of Us Explains NAIRU, Including Its Political Implications
An explanation of NAIRU for novices, as well as a discussion of its politics.
Read more...After Distancing Herself From Bill Clinton’s Economic Policies, Hillary Wants Him as Mr. Economic Fix It
Like the Bourbons, the Clintons appear to have learned nothing and forgotten nothing.
Read more...Satyajit Das: “Stay in the Name of Reform” – The Fed and ISDA’s Derivative Bankruptcy Initiative
Why a proposal to “stay” derivatives termination in the event of bank bankruptcy is inconsequential and avoids bigger questions about the use of derivatives and failure to rein in risks in this market.
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