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creditwritedowns.com - 7/6/2009

Sweden: negative interest rates and quantitative easing

— creditwritedowns.com — In the clearest signal yet that we are still in a potentially devastating global deflationary spiral, The Riksbank , Sweden’s central bank and the world’s oldest central bank, has effectively cut interest rates to minus 0.25% and has started a program ... (more) Sweden: negative interest rates and quantitative easing

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Comments vote downundo vote up FT Alphaville found this 7/6/2009found this

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nakedcapitalism.com - 7/5/2009

"Quantitative easing, credit easing and enhanced credit support aren’t working; here’s why"

— nakedcapitalism.com — Dear readers, we are NOT setting out to have a Willem Buiter-fest this weekend. It's simply that this is a slow news period and Buiter has a good post after the first video clip I've ever seen of him. So if there was more activity, the Buiter-density ... (more) "Quantitative easing, credit easing and enhanced credit ...

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Comments vote downundo vote up Abnormal Returns found this 7/5/2009found this

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Outrage reduced to Outrageous
Lawrance G. Lux — William Buiter effectively explains, though a little long-winded, why the central banks are playing to an empty house. No economic ploy like quantitative easing, credit-easing, or enhanced credit will work without two conditions being served–both concurrently: 1) the lending institutions must make a higher Profit from the easing–at least the promise of higher Profit; and 2) the lending institutions must have the confidence to lend without extreme Charges or Conditions on the Applicant. The two factors work against each other in practice. Doubt has been introduced into the ...

"Quantitative easing, credit easing and enhanced credit support aren’t working; here’s why"
naked capitalism — ... syndrome. But that isn't the right analogy. There are plenty of things that could be done to address a solvency crisis, namely encourage writedowns and restructuring of borrower debt; selectively assist viable borrowers; recapitalize dud banks, being sure to replace management and the board, but set broad objectives, monitor, but otherwise get out of the way. But that is politically inconvenient, so the powers that be are pretending the easy way out is a viable strategy. From Buiter(hat tip DonB): Quantitative easing ... isn’t working in the US, the UK or ...

The True Cost of 0.25%
GoldSeek.com — ... . Because little should surprise us except the willingness of central bankers and the academics advising them – all jollied up on a merry-go-round of university-to-official tenure and back – to do anything, whatever it takes, to force you to stop saving and keep spending like it's 2006. "Liquidity is ample, even excessive. Capital is scarce," says Willem Buiter , ex-Bank of England policy-wonk and now committed FT columnist. "A panoply of central bank and government financial interventions...has not done enough to get [the banks] lending again on any scale to the household ...