Excessive leverage and risk in the financial system, e.g., using customer funds to speculate, never ends well. Stock market crashes, bank and investment firm failures or economic recessions are all potential consequences. Following the failure of the United States to regulate over the counter (OTC) derivatives...
Posted to
Hera
by
Ron Hera
on
Fri, Nov 16 2012
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Filed under: Federal reserve, CPI, deflation, inflation, GDP, IMF, Great Depression, CDS, unemployment, debt monetization, too big to fail, International Monetary Fund, Gross Domestic Product, Consumer Price Index, MBS, mortgage backed securities, over the counter derivatives, European Central Bank, ECB, Baltic Dry Index, sovereign default, bank failure, credit default swaps, BDI, monetary policy, OMT, recession, stock market crash, liquidity, QE3, quantitative easing III, systemic collapse, outright monetary transactions, market intervention, stagflation, tax increases, austerity measures, savings, U.S. Treasury, bank credit, stagnation, economic opportunity, Federal Reserve Chairman Ben Bernanke, instability, entrepreneurship, public funds, jobs, financial crisis, operation twist, bond yields, living standards, financial repression, Carmen M. Reinhart, OTC derivatives. Glass-Steagall Act, interest rates, net loss, middle class, consumer incomes, innovation, economic recovery
Haiti. What a mess. As my father said so brilliantly, "Even before the earthquake it was never anything but a campsite." I would wager that if you'd sent a truck full of free food into Port Au Prince the day before the earthquake the reaction of the city's residents would have been...
Fannie and Freddie, Not Financial Sector to Blame By Monty Pelerin , posted January 3rd, 2010 http://www.economicnoise.com/2010/01/03/fannie-and-freddie-not-financial-sector-to-blame/ Corruption, Ineptness and Duplicity — The Description of Washington, DC For anyone still under the delusion that...
Please note my preceding posts , about the establishment of global financial governance, which has astonishingly thin coverage given its importance and implications. Has everyone been distracted? Here is some background and discussion that may be useful, in chronological order: " G-20 Shapes New...
Further to my prior post , I decided to take a whack at laying out the WSJ`s online report and describing some of its contents. The master page is here - is not outlined as clearly as the Asian print edition, which is in the following order, which I`ve linked to corresponding section of the online version...
[Update: My follow-up post outlines the WSJ`s report and chief recommendations.] I thought I`d elevate what was a side and closing comment on Stephan Kinsella `s Avatar thread , about an appalling group of articles at the Wall Street Journal, which seems to have absolutely no clue about how the financial...
I attach below a few clips of what looks like relatively perceptive financial and economic commentary by Peter Schiff , president of Euro Pacific Capital Inc. , Jim Rogers , well-known investor (and co-founder with George Soros of the Quantum Fund) and Nouriel Roubini , professor of economics at the...
http://freemmm.blogspot.com/2008/10/boom-was-financial-crisis.html
Before the bailout I was skeptical that the bailout would 1) work as it said it would and 2) that it would carry its own unintended consequences. Looks like we're coming to those hard truths day by day as markets continue to resist being "stabilized...
http://freemmm.blogspot.com/2008/10/newly-created-position-ofs-office-of.html
Yesterday at Austrian Economists , Pete was puzzled how the political rhetoric behind the financial crisis managed to wind its way around the topic of executive rewards. Some people were using the platform to voice concerns about wealth, greed and inequality...
There's much to be said about the current financial crisis. At the heart of this, as every Austrian knows, is the fault the US government holds for creating the current situation through its central bank and its inflationary policy. This fundamental economic truth cannot be stated enough. Ignorance...