Or so a correspondent tells me. What do we know? The Fed is currently leveraged at over 110:1, or in laymens terms it has a 0.9% capital ratio. Most “banks” would seem to be in dangerous peril of bankruptcy being this highly leveraged (4% to 8% is not only their typical capital cushion, but 4% […]
Category Archive for 'Money'
Alex Tabarrok points us to news that the Swiss are voting on whether to require (commercial) banks to hold 100% reserves. Now, the vote here is with regard to 100% reserves on deposits, here are a few thoughts/questions one may want to ask as we consider this: Do you think that curtailing the ability of […]
Reader warning – this is not well thought out, and I am narrating it to my phone via voice as I am driving to work this morning. It occurs to me that either retail financial institutions are intensely sclerotic, old-school, dinosaurs, or that regulation is strangling what they are able to offer retail customers, or […]
If you read the Fed’s consolidated financial statements for fun and take them seriously, you would learn that the Fed’s current leverage ratio is … … … 77:1. It’s just a number of course.
Do you think debasement is unique to the monetary authorities? Heck no! For those of you familiar with the various hiking achievements, one of the most famous groups of treks on the East Coast is to complete the Adirondack 46. This is supposed to represent the 46 peaks in the Adirondacks that exceed 4,000 feet […]
Aside from the carbon footprint of thousands of people heading to the Nevada desert and literally “burning the man” there may be something actually illegal about Burning Man. For the uninitiated, Burning Man is a weeklong event that attracts over 40,000 very interesting and eclectic people. You can read lots about it here. As I […]
For the Goldi-Locks armchair economist, no price is good. Prices are always too high, too low or too stagnant. The same seems to be true of competition. Anti-capitalists are entirely obsessed with the idea that if we allow markets to run wild, corporations will grow larger and larger and larger and exert undue influence over […]
There is no denying that many people, perhaps yours truly included, seem to love the idea of having money. The same, of course, is true for extra-individual institutions. But is it really the case that even for the most megalomaniacal person out there that the acquisition and pursuit of money is an end wholly unto […]
Posted in Money on Aug 20th, 2012
In the most recent study of one of the many credit facilities set up by the Fed during the financial crisis: In this paper I use the TAF micro-level loan data and find that about 60 percent of TAF loans went to foreign banks that pledged asset-backed securities as collateral for these loans. The data and analysis […]
The tension between Wall Street, Main Street and K-street has been severe ever since the National Banking era got underway in the 1860s, and probably earlier. We’ll detail some of those tensions in the future. In the meantime, courtesy of the folks at Division of Labor, here is a story of how bank regulations “help” […]