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Category Archive: Bernanke

  1. Obstacles To Small Business Lending

    On Jan­u­ary 13th I attended the FDIC Small Busi­ness Forum titled Over­com­ing Obsta­cles to Small Busi­ness Lend­ing and got an extra­or­di­nary glimpse into why many small busi­nesses are miss­ing the recov­ery.  Even though the forum pan­elists agreed that “what’s good for small busi­ness is good for Amer­ica”, they had few ideas about how to ener­gize […] [read full story]

    Posted in: BANKS, Bernanke, Credit Crisis, economy, Finance, Public Policy, REGULATION, Regulatory Reform, SBA, Small Business Lending
  2. The New Supersized Fed

    Fed watch­ers need to stop pan­ick­ing when they look at the new super­sized Fed bal­ance sheet and mon­e­tary base. The Fed’s bal­ance sheet doesn’t nec­es­sar­ily mean run­away infla­tion is in our future or that the Fed is out of con­trol. The Fed got super­sized because Bernanke & Com­pany came to appre­ci­ate the U.S.‘s spe­cial role […] [read full story]

    Posted in: Bernanke, economy, Excess Reserves, Federal Reserve, Finance, monetary policy, Money Supply, Politics, Public Policy
  3. What If The Fed’s Isn’t Printing Money Like A Drunken Sailor?

    What if con­ven­tional wis­dom about the Fed is wrong and it isn’t print­ing money like a drunken sailor? Well…that would make most of the media cov­er­age of the bond mar­ket and the econ­omy wildly off the mark. As it turns out while media talk­ing heads were rant­ing about how the Fed was run­ning their print­ing presses […] [read full story]

    Posted in: Bernanke, Brad Setser, Economic Statistics, Federal Reserve, Finance, M1, M2, M3, monetary policy, Money Supply, Politics, Public Policy
  4. Regulatory Reform Shouldn’t Rely On The Fed

    I am still shak­ing my head in amaze­ment at Alan Greenspan’s edi­to­r­ial in last Wednesday’s Wall Street Jour­nal titled The Fed Didn’t Cause the Hous­ing Bub­ble.  In the arti­cle Greenspan explained why the hous­ing bub­ble wasn’t the Fed’s fault (and since he was Chair­man of the Fed, by impli­ca­tion it wasn’t his fault either).  While […] [read full story]

    Posted in: Alan Greenspan, BANKS, Bernanke, Credit Crisis, economy, Federal Reserve, Finance, monetary policy, Politics, Public Policy, Regulatory Reform, Timothy Geithner
  5. 7 Faint Signs That The Economy’s Bottom Is In Sight

    There are opaque and early signs that the U.S. econ­omy has started the begin­ning of a bot­tom­ing process. Just like a div­ing sub­ma­rine needs to stop its down­ward motion and reach its low­est depth before it can resur­face, the econ­omy needs to go through the steps of slow­ing its decline and sta­bi­liz­ing before it can […] [read full story]

    Posted in: BANKS, Bernanke, CPI, Credit Crisis, Deflation, Economic Statistics, economy, Federal Reserve, Finance, Fiscal Policy, Inflation, M1, M2, monetary policy, Money Supply, Obama, Politics, Public Policy, TARP
  6. Money Supply And Economic Data Weekly Watch — How the Fed is Making Banks Lend

    The Fed­eral Reserve is forc­ing banks to lend or face finan­cial dis­as­ter. The Fed’s lat­est strat­egy gives banks the stark choice of lend­ing or los­ing a lot of money from oper­a­tions. Every­one knows the Fed cut its tar­get Fed­eral Funds rate to the bone this week. In a less obvi­ous move, the Fed is also […] [read full story]

    Posted in: BANKS, Bernanke, Credit Crisis, Deflation, Economic Statistics, economy, Federal Funds Rate, Federal Reserve, Finance, M1, monetary policy, Money Supply, Politics
  7. Money Supply And Economic Data Weekly Watch – Deflation Hurts The Economy Like Hydrochloric Acid Burns Through Steel

    Defla­tion hurts the econ­omy like hydrochlo­ric acid burns through steel. Falling prices destroy cor­po­rate and house­hold bal­ance sheets and make it impos­si­ble for the finan­cial sec­tor to func­tion nor­mally. Demand is destroyed by defla­tion which in turn leads to more defla­tion. The weak­est sec­tors are hurt first, but defla­tion quickly burns through healthy indus­tries. This […] [read full story]

    Posted in: BANKS, Bernanke, CPI, Deflation, Economic Statistics, Finance, GDP, Inflation, M1, M2, Manufacturing, monetary policy, Money Supply, Obama, Oil, Politics, Public Policy, Retail Sales
  8. Why Hasn’t Treasury Worked Out A Program For Resolution of Non-Bank Financial Institutions?

    I don’t under­stand why Trea­sury hasn’t put in place a com­pre­hen­sive plan for the res­o­lu­tion of failed non-bank finan­cial insti­tu­tions. Paul­son and Bernanke said that they were work­ing on a pro­posal after the Bear Stearns col­lapse and that a frame­work for res­o­lu­tion of non-bank finan­cial fail­ures was needed imme­di­ately. But 8 months later the world […] [read full story]

    Posted in: BANKS, Bernanke, Business Environment, Credit Crisis, Economic Statistics, economy, Finance, Paulson, Politics, Regulatory Reform, Willem Buiter
  9. Money Supply and Economic Data Weekly Watch – It’s A Brave New World For Federal Funds

    It’s a brave new world for Fed­eral Funds. The actual rate that Fed­eral Funds were trad­ing at last week was 0.23% despite the Tar­get Fed­eral Funds Rate being 1.00%. This anom­aly could be sig­nal­ing the end of the era when Fed­eral Reserve pol­icy is expressed in a sin­gle num­ber, the Tar­get Fed­eral Funds Rate. Tech­ni­cal […] [read full story]

    Posted in: BANKS, Bernanke, Economic Statistics, economy, Federal Funds Rate, Federal Reserve, Finance, LIBOR, M2, monetary policy, Money Supply
  10. Money Supply and Economic Data Weekly Watch – The Next Crisis Is On The Horizon

    Even while the Fed and Trea­sury are fight­ing defla­tion and a seri­ous reces­sion, they are lay­ing the ground work for a new liq­uid­ity bub­ble with the poten­tial for dev­as­tat­ingly high infla­tion. While the cur­rent news is dom­i­nated by reces­sion­ary GDP, falling con­sumer con­fi­dence, bank­ing res­cues, incred­i­ble stock mar­ket volatil­ity and frozen short term money mar­kets, […] [read full story]

    Posted in: BANKS, Bernanke, Deflation, Economic Statistics, economy, Federal Funds Rate, Federal Reserve, Finance, Fiscal Policy, FOX BUSINESS NETWORK, Inflation, Leverage, Liquidity Trap, M2, monetary policy, Money Supply, REGULATION, Treasury