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Sunday links: overcorrection to the downside
Abnormal Returns —
... On the composition of the Fed’s balance sheet: “The bottom line is that Bernanke has made a gamble with something approaching 2 trillion.” (Econbrowser) ...
Links 12/22/08
naked capitalism —
Happiest Man in the World...?!? Cassandra Tiger moves away from state capital Times of India Oligarchs Seek $78 Billion as Credit Seizure Empowers Putin Bloomberg Federal Reserve balance sheet Jim Hamilton, Econbrowser Let us bend the rules, say organic farmers Times Online Archbishop of Canterbury warns recession Britain must learn lessons from Nazi Germany Telegraph Crunch ‘to hasten rise of China to No 1 spot’ Times Online Women sought as "terriers" for bank ...
links for 2008-12-22
Economist's View —
Black swans and dark matter - John Quiggin
Federal Reserve balance sheet - Econbrowser
Fedthink - Interfluidity
Luck vs. Effort? - Consider the Evidence
The lender of last resort of the 21st century - voxeu.org
‘Animal Spirits’ in America - Elliott Middleton,
A Tax Credit for Employment Growth? - John H. Bishop
Understanding The Economic Crisis in Plain English - Bruce Judson
Fedthink
interfluidity —
James Hamilton has an excellent post on the Federal Reserve and its changing balance sheet today. If you haven't been following this stuff obsessively, it's probably the single best primer to get up to speed. To my mind, there are three signal facts about the brave new balance sheet: The size of the Federal Reserve's balance sheet has ballooned, more than doubling over a period of three months. If we ...
Monday morning links
The Mess That Greenspan Made —
... - MarketWatch Pre-packs ready for failing retailers - Telegraph Russia’s oligarchs queue for loans - Financial Times HOUSING Aid to Homeowners May Double Under Bush-Backed Loan Initiative - Bloomberg Views Diverge on How To Recast Fannie, Freddie - Washington Post Realtor group prez eyes housing’s opportunities - OC Register Defaults make comeback - Signs on San Diego FED/TREASURY/BANKING Federal Reserve balance sheet - EconBrowser Junior Asks Daddy, Where Do Bailouts Come From ...
Deconstructing the Fed's balance sheet
The Mess That Greenspan Made —
Jim Hamilton at Econbrowser dissects the balance sheet of the Federal Reserve, explaining in excruciating detail why you shouldn't be alarmed at the chart you see below. ...
Bad Assets - No Trust
Moon of Alabama —
... One reason is the counter intuitive Fed policy. To somewhat sterilize the expansion of its balance sheet the Fed is now paying interest on the reserves banks keep with it. The result: ...
Morning Reading 12/23/08: Fed, Madoff, Economy, Financing, etc.
Paul Kedrosky's Infectious Greed —
Federal Reserve balance sheet (Econbrowser) Analyst warns of 'solar market eclipse' in 2009 (EETimes) Communicating a Fraud… The Flaws of Perception (Kassar) Madoff investor warned its clients (FT) Economic conditions snapshot, December 2008 (McKinsey) IT vendors cut financing rates down to nothing (CIO) How Can No One See An Imminent Fall in Chinese GDP and a Secular Slowdown Thereafter? (NC) Where'd the bailout money go? Shhhh, it's a ...
Quantitative Easing etc.
self-evident —
Prof. Hamilton at Econbrowser has a fantastic post explaining the Federal Reserve’s balance sheet.
Here I survey how we got here, where things currently stand, and what it all means.
Let me begin by reviewing some first principles of what the Fed is all about. How did the cash currently in your wallet get there?
…
The bottom line is that Bernanke has made a gamble with something approaching 2 trillion. If the gamble wins, taxpayers owe nothing. If the gamble loses, taxpayers are committed to borrow a sum equal to any losses ...
On expanding balance sheets and inflationary policy
macroblog —
... Jim Hamilton covered much of the territory implied by these questions in a very extensive Econbrowser post not too long ago, but the distinction between money creation and Fed balance sheet expansion continues to be confounded. Here, for example, is a passage from the ...
"Expanding Balance Sheets and Inflationary Policy"
Economist's View —
...
Jim Hamilton covered much of the territory implied by these questions in a
very extensive Econbrowser post not too long ago, but the distinction between
money creation and Fed balance sheet expansion continues to be confounded. ...
The record though ... is that not all of that $2 trillion represents an increase
in the money supply: ...
Deflation/Inflation debate: watch the lags...
Capital Chronicle —
... with the previous stand alone "price of money" stance is the crux of the deflation/inflation debate so much cyber and real ink is being spilt over. Toss in the financing form of the bigger-every-day Obama fiscal package - Treasury sale vs reserve creation by the Fed – and watch it run and run. Then, yesterday as I confessed (without irony or basis) to coveting the credit for her post Ethics Exam, Cassandra Does Tokyo sent me this link to an excellent Econobrowser post and highlighted the comment below from Professor Perry Mehrling of Columbia ...
