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  • New Economic Thinking, Hicks-Hansen-Wicksell Macro, And Blocking The Back Propagation Induction-Unraveling From The Long Run Omega Point [View article]
    I don't follow all of the vocab.

    But in the 1970's and 1980's there was no QE.

    Didn't QE stall/lessen the liquidate/liquidate/li... phase of the recession?

    Didn't the unprecedented Fiscal Stimulus/Tax cuts help too?

    Didn't the massive social insurance/deposit insurance/bond insurance/gov rainy day funds/etc kick in to help too?

    So you are left with a world with quite a bit of cash/looooooowwwwwwww returns.

    Just in my opinion.....
    Jun 9, 2015. 02:21 PM | Likes Like |Link to Comment
  • Bad Mortgage/Construction Loans Take Bank Down - They Even Tried To File A Restraining Order To Halt The FDIC!  [View instapost]
    That's funny a restraining order against the FDIC.

    I wonder how their bank would have fared if the FDIC had just yanked their insurance.

    For small banks that don't have unlimited borrowing capacity at the FED the insurance on the deposits is the only thing stopping a run.
    May 13, 2015. 12:43 PM | Likes Like |Link to Comment
  • Big 5 Banks Own 44.61% Of Industry Assets [View instapost]

    A couple of these are really good banks. Wells and US Bank.

    I don't have much interface to Citi:

    Chase and BofA throw their customers around like they don't matter.

    Talking to a Chase customer:

    She had her Debit Card Hacked at one of Chases' ATM.

    They are making her eat the $400 stolen from it.

    This is not legal, but they don't care and they can scare people into giving up.

    It are these type of actions that will lead to problems for these big banks. Fine they have proven that they are too important to fail, I get that, but the next question for some of them are they too big to be human anymore.
    May 13, 2015. 12:34 PM | Likes Like |Link to Comment
  • The Debt Supercycle Versus Secular Stagnation [View article]
    Outstanding comment.

    I think this is the heart of the political discussion that needs to happen in the US.

    Either more buy into the benefits of Globalization or it goes backwards.

    What if all of these Democracy's around the world that we claim we will fight to the death to defend, have to import any willing and able unemployed American and teach them their language for a couple of years and pay for it?

    At least then folks could say they got a free trip out of Globalization.
    May 8, 2015. 11:57 AM | Likes Like |Link to Comment
  • Federal Reserve Indicates Desire To Implement International ACH Payment System [View instapost]
    Very interesting article....

    I liked this comment:

    "The Fed will develop a payment system which reduces fraud risk and makes the system more transparent by sharing fraud data and cyber threat information. The Fed will try to pursue non-regulatory tactics to achieve this goal whenever possible."

    It blows my mind that the current wire system just also fraud to take place and their is no undo function. I always wondered if this was a feature or a bug of the wire system.
    May 1, 2015. 12:29 PM | Likes Like |Link to Comment
  • What About Ebbing U. S. Economic Leadership? [View article]
    The E-Cig.

    Great Chinese invention.
    Apr 24, 2015. 02:10 PM | Likes Like |Link to Comment
  • New Law Of Lending And Borrowing [View article]
    Yes, this is correct.

    Interesting article and theory.

    Banks are capital and liquidity constrained irregardless of the economic cycle.

    Regulators make sure.

    But they are all run by humans and humans tend to all think alike. Interestingly regulators will never tell a bank they "can't" make a loan. They just beat them up afterwards.
    Apr 24, 2015. 01:18 PM | Likes Like |Link to Comment
  • 'No Drama Obama' Economic Recovery Continues [View article]
    This and the probable Supreme Court upholding Obamacare helps Hillary's chances a bunch.
    Apr 16, 2015. 02:34 PM | 2 Likes Like |Link to Comment
  • QE: The Foundation For Continued Higher Asset Prices [View article]
    Great Article.

    You make a lot of simple logical explanations for what is happening.

    I wish the tax code make dividends more advantageous to companies than share buy backs.

    One would think that might help aggregate demand more.
    Apr 16, 2015. 02:29 PM | Likes Like |Link to Comment
  • The Budget Constraint Does Not Mean The Government Will Pay Off Its Debt [View article]
    Interesting article.

    In the end if all countries are following some sort of MMT don't exchange rates end up being the item that floats.

    So it's no longer bond vigilantes one needs to worry about but FX traders?

    If so, could I ask a stupid question?

    If every country in the world has a computer and they are all hooked up on SWIFT or some system that knows where all of the money is, say Iran or North Korea, or even China starts floating in this system, ie they hook up to SWIFT.

    Every country can create as much money as they like, right? So in the end is the only check on this foreign exchange rates?

    I just can't quite get my head around a country like China or Iran creating as much money as they like and then they get to hook up to the system?

    Do currency swap arrangements have anything to do with this?
    Apr 14, 2015. 03:01 PM | Likes Like |Link to Comment
  • Canadian Banks Sheltered From The Housing Bubble [View article]
    Very interesting.

    Why does it always seem to overshoot by 10% or 15% either direction?

    If you say 75% is where it should be I bet it hits 65% before it eventually turns back around to get to the 80 85%
    Apr 7, 2015. 01:40 PM | Likes Like |Link to Comment
  • The Housing Bubble And The Lesser Depression: Either The Very Sharp Dean Baker, Or I, Am Hopelessly Confused [View article]
    Question who's smarter....

    1. The Social Security recipient who becomes an ex-pat in Vietnam, claims SS benefits, and lives like a king. God bless that crippled Roosevelt.

    2. The Federal lobbyist who argues that smoking is safe and more laws should enforce free trade.

    3. The new job applicant that while looking for work, also applies for disability.

    4. The blue collar worker who went to tech school and now competes with 6 dollar a day labor.

    5. The HSBC banker who takes Mexican drug cash to stuff into their bank and meet their deposit goals.

    6. The Alabama teacher who helps her students cheat on tests.

    7. The tenured College Professor. Who argues for free trade and competition for all, except themselves, because for some reason their job is just too important to have to submit to competition.

    Strange world we live in. Lot's of angles and ways to compete. Just not what it looks like to most. Any votes out there?
    Apr 2, 2015. 12:06 PM | 2 Likes Like |Link to Comment
  • Reading The Federal Reserve's Tea Leaves/Dot Plots [View article]
    They may have the numbers wrong but they are going to stick to a plan.

    A great plan.

    In their mind they dropped rates to help the economy. It worked but a lot of other things happened too. Does anyone really believe higher rates will force folks off food stamps or disability? Does any one think prime is tied to the middle class paying more for the ACA?

    Now, ignore a lot of other things, and they just think they better raise rates, because they can't, or won't drop them any further…

    Why not….it's hard to be in charge and do nothing. They think it will be fun to raise a quarter point then another then another then another then another then another. Oh, we broke it…then at least they can lower them again….

    These are really serious folks…

    A few increases may or may not do anything. That is what they hope for.

    Such a strange place to be as a leader. Do something that they hope does nothing…
    Mar 31, 2015. 12:11 AM | Likes Like |Link to Comment
  • Former UCB Chief Credit Officer Convicted Of Securities Fraud And Other Corporate Fraud [View instapost]
    Thank you for this update.

    I know stories of many failed banks. Some of the bankers got jail time and some just lost a lot of money.

    I hope the public realizes that justice is being served to these crooks.

    Basically, if you were stupid you get to go home with less money. If you lied, concealed, or inflated things you are in trouble.

    It's interesting that the Justice Department is willing to only fine large scale money laundering without jail time.

    They seem to view covering up a bad loan as worse than taking a suspicious deposit. I'm not saying they are wrong on this, just seems this way.
    Mar 30, 2015. 11:52 PM | Likes Like |Link to Comment
  • Commercial Banks Vs. Financial Intermediaries [View instapost]
    Thanks for the link to this article.

    It's dated but it's proposal is what has happened during this latest contraction.

    Rates moved lower and folks got skittish and moved their money out of 1% time deposits into Non-Interest bearing accounts. As this article mentions that helps banks.

    But that is not same as saying CB's don't need deposit regulations.

    I didn't know much about Req Q stuff. But the regulators actually made sure that "bad" banks didn't pay more for deposits than any "good" bank in their market. The affect of that was, a bad bank couldn't just pay up to buy local deposits to stop a run. So as you have pointed out many times, the regulators are following this 1966 article.

    And they fret about "Core" deposits.

    Thanks for your explanation about Money Markets.

    I appreciate all of your wisdom…
    Mar 30, 2015. 11:32 PM | 1 Like Like |Link to Comment