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finance becomes money

Reach For Yield Before Counted As ‘Money Supply’

By |2015-07-06T17:25:48-04:00July 6th, 2015|Economy, Federal Reserve/Monetary Policy, Markets|

The Federal Reserve under Alan Greenspan and then Ben Bernanke has escaped, largely, responsibility for the panic in 2008 mostly because there is no direct link between monetary policy and the housing bubble. The most stinging criticism that comes out of the era is Greenspan’s “ultra-low” interest rate setting for federal funds, but there is no smoking gun in the [...]

Anecdotes on Eurodollar ‘Money Supply’; A Final Supplement

By |2015-06-29T16:47:02-04:00June 29th, 2015|Economy, Federal Reserve/Monetary Policy, Markets|

While this was meant to be anecdotal, giving the whole rise and fall of eurodollars an actual feel through actual published bank results, the more abstract collections of the derivatives world conforms very well with those singular sketches in JP Morgan and Goldman Sachs. The BIS, for example, publishes its estimates for the give and take of the gross notional [...]

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 [...]

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