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links for 2008-10-08
Economist's View —
Balance sheet of the Federal Reserve - Econbrowser
“Why is the Fed Paying Interest on Excess Reserves?” - macroblog
Capitalism and Skepticism - Christopher Carroll
If SS Was a Private Corporation it Would Sue Tom Brokaw - Dean Baker
It is time for comprehensive rescues of financial systems - Martin Wolf
Unfair to Brazil - Dani Rodrik
Carbon Prices and Driving - The Bellows
Boom goes the CDS - Free Exchange ...
Where Is All the Liquidity?
EclectEcon —
... current problem seems to be that banks are hoarding
cash. And part of the reason for that may be that they are
waiting for settlement of the derivative securities created by Lehman
and other failed firms. Supposedly, Lehman securities will be settled this Friday, and the Feds are working on creating a central clearinghouse.
Those things may help, but don't, on my account, bet on it. Update #2: Kip Esquire in the comments points to this detailed analysis by Jim Hamilton. Look at his graphs! Wow! ...
Wednesday links: adjust your strategy
Abnormal Returns —
... Is $700 billion enough to put the banking system on the road to recovery? (Odd Numbers)
Why the Fed is paying interest on excess reserves. (macroblog)
Don’t hold your breath for the inevitable ‘official’ recession dating. (Real Time Economics)
Taking a closer look at the Fed’s balance sheet. (Econbrowser)
Is the ‘Great Moderation‘ ...
Ben? It's Hank. I Have an Idea. Let's Recapitalize Banks!
Paul Kedrosky's Infectious Greed —
... Anyway, as Treasury and the Fed have discovered, nervous banks with access to the Fed spigot are like worried consumers who get stimulus checks: They don't spend, they hoard. And given that the fundamental issue isn't liquidity -- there is absurd amounts of cash out there -- but insolvency, and given the experience of other countries during similar credit crises, and given how slow and expensive TARP is likely to be, I'm glad Paulson, Bernanke, et al. are seeing some sense. ...
Links 10/9/08 and Reader Request
naked capitalism —
... Balance sheet of the Federal Reserve Jim Hamilton, Econbrowser. A very useful post, and explains which Fed actions are liquidity enhancing and which not. Illustrative paragraph: ...
Federal Reserve Balance Sheet
Across the Curve —
... I just came across this recent posting by Professor James Hamilton at Econbrowser in which he provides illuminating insight into the recent machinations which the Federal Reserve has employed to keep the system awash in liquidity. ...
Did (or Didn't) Japan Just Re-introduce Quantitative Easing?
Japan Economy Watch —
... Interest Rate Policy (ZIRP). In order to answer such questions we will also need to look at the (none to evident) issue of whether or not it is the case that this week's decisions at the BoJ to all effect and purpose do actually constitute a return to QE. To anticipate a little bit what will be argued in this rather lengthy post, there is a fundamental difference between the recent move towards QE taken by the Fed (especially after the end of September as explained by James Hamilton in this excellent post ), and the policy pursued by the BoJ between 2001 and 2006, and this ...
Did (or Didn't) Japan Just Re-introduce Quantitative Easing?
Global Economy Matters —
... To anticipate a little bit what will be argued in this rather lengthy post, there is a fundamental difference between the recent move towards QE taken by the Fed (especially after the end of September as explained by James Hamilton in this excellent post), and the policy pursued by the BoJ between 2001 and 2006, and this difference concerns the objectives of the policy. While both initiatives have in common that they are strategies to get that "something extra" out of monetary policy in a very low interest rate environment (near the so-called zero bound), they differ in that the ...
Deconstructing the Fed's balance sheet
The Mess That Greenspan Made —
... Beginning in September, the Fed decided it couldn't afford to sell off any more of its Treasuries, but wanted to lend more and still have no effect on the money supply. To do so it needed to find a way to funnel the reserves created by the new loans it would make into categories on the liabilities side that would not result in more cash held by the public. The first such device was to reach an agreement with the Treasury for the Treasury to simply hold on to a huge volume of Federal Reserve deposits, some $484.6 billion as of last week. The way this worked is that two operations ...
S&P's Puts Spanish Sovereign Debt On Ratings Watch Negative
Spain Economy Watch —
... which could be used to expand the ECB balance sheet in the way that the US Treasury has done for Bernanke and the US Federal Reserve, but this raises a structural question with important political implications, since non eurozone countries like the UK and Sweden would also be being asked to underwrite eurozone debt. Or are we talking of a "shotgun-fushion of the EU and the eurozone to created that much maligned federal state which some have been arguing we need to make the eurozone a coherent entity, but which others have resisted tooth and nail? ...
S&P's Puts Spanish Sovereign Debt On Ratings Watch Negative
Euro Watch —
... which could be used to expand the ECB balance sheet in the way that the US Treasury has done for Bernanke and the US Federal Reserve, but this raises a structural question with important political implications, since non eurozone countries like the UK and Sweden would also be being asked to underwrite eurozone debt. Or are we talking of a "shotgun-fushion of the EU and the eurozone to created that much maligned federal state which some have been arguing we need to make the eurozone a coherent entity, but which others have resisted tooth and nail? ...
S&P's Puts Spanish Sovereign Debt On Ratings Watch Negative
Global Economy Matters —
... which could be used to expand the ECB balance sheet in the way that the US Treasury has done for Bernanke and the US Federal Reserve, but this raises a structural question with important political implications, since non eurozone countries like the UK and Sweden would also be being asked to underwrite eurozone debt. Or are we talking of a "shotgun-fushion of the EU and the eurozone to created that much maligned federal state which some have been arguing we need to make the eurozone a coherent entity, but which others have resisted tooth and nail? ...
Standard &Poor’s Puts Spanish Sovereign Debt On Ratings Watch Negative
A Fistful Of Euros » A Fistful Of Euros —
... which could be used to expand the ECB balance sheet in the way that the US Treasury has done for Bernanke and the US Federal Reserve, but this raises a structural question with important political implications, since non eurozone countries like the UK and Sweden would also be being asked to underwrite eurozone debt. Or are we talking of a “shotgun-fushion of the EU and the eurozone to created that much maligned federal state which some have been arguing we need to make the eurozone a coherent entity, but which others have resisted tooth and nail? ...
