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Bear Stearns

Anecdotes on Eurodollar ‘Money Supply’; Part 4

By |2015-06-29T16:07:38-04:00June 29th, 2015|Economy, Federal Reserve/Monetary Policy, Markets|

The early 1990’s saw the S&L’s fail on wholesale means but also to be displaced entirely by the GSE’s and securitizations of also wholesale monetarism. Indeed, when LTCM failed in 1998 rather than recognize the glaring limitations evident in the systemic pathology the Fed looked at it the way it wanted, preserving itself at the apex of political-economic planning and [...]

Anecdotes on Eurodollar ‘Money Supply’; Part 3

By |2015-06-29T16:03:31-04:00June 29th, 2015|Economy, Federal Reserve/Monetary Policy, Markets|

In April 2013, Janet Yellen gave a speech still as the Vice Chair of the Federal Reserve. Her topic was communication, fitting in that it was given to the Society of American Business Editors and Writers. She expressed the evolution in Fed policy as it had changed since the more direct if silent beginnings in the early 20th century. Not [...]

Anecdotes on Eurodollar ‘Money Supply’; Part 2

By |2015-06-26T18:42:09-04:00June 26th, 2015|Economy, Federal Reserve/Monetary Policy, Markets|

What I set about to demonstrate in Part 1 was the visible spectrum of the wholesale system. In other words, you can see balance sheets grow and distort, with money dealing along with it, but that doesn’t cover the full dimensions on how and why credit production, especially through securities, bloomed as it did. This is, in many ways, the [...]

Anecdotes on Eurodollar ‘Money Supply’; Part 1

By |2015-06-26T18:39:51-04:00June 26th, 2015|Economy, Federal Reserve/Monetary Policy, Markets|

I often write about the rise and fall of the eurodollar standard in very abstract terms, largely because most of what occurs there is hidden, opaque and/or terribly abstract. The difficulty is in trying to define and describe “money” under just such a pliable system, a task not easily solved by current conventions. For instance, it was the trend in [...]

Free The Monetary System, Free The Recovery

By |2015-05-15T11:04:49-04:00May 15th, 2015|Economy, Federal Reserve/Monetary Policy, Markets|

Despite the fact that the FDIC is largely charged with regulating small, community banks, it’s mixed-in deposit guarantee “insurance” brings the agency into contact with all manner of banks. This includes, of course, the largest firms that dominate in financial areas that have very little to do with banking in its most monetary form. The FDIC’s area of responsibility, in [...]

Credit Warnings Starting To Penetrate

By |2014-09-23T21:46:41-04:00September 23rd, 2014|Bonds, Economy, Federal Reserve/Monetary Policy, Markets|

There is a slow but steadily building sense that there is more than a little problem with systemic liquidity as it stands right now. While not quite mainstream, there has been some minor attention devoted to repo problems and now credit trading. An article in Bloomberg today does a pretty good job of sketching out the real world as it [...]

Curiously Waiting

By |2014-02-19T12:34:26-05:00February 19th, 2014|Federal Reserve/Monetary Policy, Markets|

It is a definitive facet of the modern central bank that mystique is often more precious than actual skill or competence, including specific knowledge of the economy or markets (or both together). Such an aura is predicated solely on the plausibility that the central bank actually possess such. Removing that veil, as has been done in some measure since 2007, [...]

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