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Thursday links: easy easing
Abnormal Returns —
... Let the quantitative easing begin! The Fed pledges to buy Treasury bonds in an attempt to lower borrowing costs across the board. (WSJ.com, NYTimes.com)
Shock and awe. Quantitative easing might work, but it may come at the expense of higher inflation. (naked capitalism, Marginal Revolution, Econbrowser, Economist.com, Curious Capitalist, Aleph Blog)
A cautionary take ...
What A Sensible Keynesian Would Say
EconLog: Library of Economics and Liberty —
I'm not sure if James Hamilton would call himself a "Keynesian," but this is exactly what sensible Keynesians should say: I emphasize that I am decidedly not suggesting that either fiscal or monetary policy stimulus are capable of solving all of our problems. Real debt imbalances, both domestic and international, frictions in moving resources out of housing and autos and into other sectors, and the profound problems with our financial system all place important physical constraints on what any stimulus package, monetary or fiscal, is capable of achieving. Once we get to 3% ...
links for 2009-03-20
Economist's View —
... to Fed Plan to Revive the Securities Market - NYTimes.com
The human brain is on the edge of chaos - EurekAlert
Bizarre Giant-Headed Predator Found - National Geographic
Wall Street's most storied firm is surviving on taxpayer dollars - Daniel Gross
A look at postrecession employment trends - macroblog
Greenspan's Failed Attempt to Exonerate the Fed - Beckworth
Quantitative easing - Econbrowser
H.G. Wells, London, and the failure of summits - ...
Further reading
FT Alphaville —
Elsewhere on Friday, - AIG rage obscures simple truths. - The next AIG scandal (yes, really). - The Fed’s new high-risk game with inflation. - Perhaps it’s time to buy Tim Geithner a Bloomberg terminal . - Don’t bet against the Fed. - Naked Shorting - an exchange. - More good times ahead for the credit-rating agencies . - Resurrecting defunct financial brands . - Schumpeter and the slow march towards socialism. - Passive hedge-fund investing . - The biggest losers in last year’s hedge ...
Friday morning links
The Mess That Greenspan Made —
... Economist • U.N. panel says world should ditch dollar - Reuters HOUSING • House prices: Caught in the downward current - Economist • Mortgage rates are low. So are approval rates - CNN/Money • Property tax too high? Assessor will hear your plea! - OC Register • Bay Area home median falls below $300,000 - SF Gate FED/TREASURY/BANKING • Greenspan’s Bubbles 101 Lesson Must Be Avoided - Bloomberg • Quantitative easing - Econbrowser • Fed’s Approach Creates Chance of Surprise - WSJ ...
Like the Mafia buying "protection"?
The Mess That Greenspan Made —
Dr. James Hamilton at Econbrowser comments on the Fed's recent policy announcement and recommends that the central bank buy more Treasury Inflation-Protected Securities. ...
ETF Update: Financial Sectors Take the Lead
A Dash of Insight —
... Second, the Fed actions last week -- quantitative easing,
buying bonds, etc. -- are anlalyzed nicely
at Econbrowser, one of our featured sites. The actions have been delayed,
but are still important. ...
ETF Update: Financial Sectors Take The Lead
Daily Markets —
... response from FASB. Many observers are skeptical about the value of the so-called toxic assets. Whatever one believes on this score, the new rules will help. Financial institutions will be able to meet capital requirements more readily and will have a reduced risk of big write downs. This may help in raising more private capital. The question is not whether the rule change will help, but how much. Second, the Fed actions last week - quantitative easing, buying bonds, etc. - are anlalyzed nicely at Econbrowser, one of our featured sites. The actions have been delayed, ...
Inflation Expectations for Beginners
The Baseline Scenario —
... has been stuck in recession for over fifteen months and the Federal funds rate has spent the last several months at zero. (The Fed funds rate cannot ordinarily be negative, because one bank won’t lend $100 to another bank and accept less than $100 in return; it always has the option of just holding onto its $100.) As a result, the Fed has resorted to other policy tools, most notably large-scale purchases of agency and Treasury securities, funded by creating money. (Here’s James Hamilton’s analysis.) ...
