Snider: The FOMC Gets Slower Still
bySource: http://www.alhambrapartners.com/2015/08/18/the-fomc-gets-slower-still/ Looking back now, January was such a weird month. You had, on the one hand, the barely restrained giddiness of the mainstream…
Economics
Keeping the Bubble-Boom Going
byThe US Federal Reserve is playing with the idea of raising interest rates, possibly as early as September this year. After a six-year period…
Zero Hedge: After 6 Years Of QE, And A $4.5 Trillion Balance Sheet, St. Louis Fed Admits QE Was A Mistake
bySource: http://www.zerohedge.com/news/2015-08-19/after-6-years-qe-and-45-trillion-balance-sheet-st-louis-fed-admits-qe-was-mistake As you’re no doubt aware, the Fed is fond of using the research departments at its various branches to validate policy and…
Will China’s currency depreciation help the economy?
byLast week the Chinese government decided to depreciate its currency on three consecutive occasions. On Thursday the price of the US$ was trading at…
Reserve Judgement
byWith regard to the vexed issue of the renminbi, let’s focus on the basics. The official response to July’s stock market collapse saw loans…
But what does it mean?
by“Risk is what’s left over when you think you’ve thought of everything.” – Carl Richards. By the time this financial crisis is over, a…
Welcome to the world of ZIRP zombies
byInterest rates in the US, Europe and the UK were reduced to close to zero in the wake of the Lehman crisis nearly seven…
The Economy is in Liquidation Mode
byIf you’re an American over a certain age, you remember roller skating rinks (I have no idea if it caught on in other countries)….
Yield Purchasing Power: $100M Today Matches $100K in 1979
byI wrote a story about poor Clarence who retired in 1979, and even poorer Larry who retired last year. I created these characters to…
Gibson’s paradox: the consequences
byWe now have an explanation for Gibson’s paradox (posted here), a puzzle that has defeated mainstream economists from Fisher to Keynes and Friedman. The…