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.
Category Archive for 'Money'
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” […]
The Start of the Great Depression by Michael E. Marotta (This presentation originally appeared in the Fall 2009 issue of the Mich-Matist of the Michigan State Numismatic Society.) No mythology faces fewer challenges than the folktale of The Great Depression. The Austrian economist, Ludwig von Mises, pointed out in Human Action that capitalists and socialists […]
It is easy, even for the best economists, to get stuck thinking about only one side of a market, or on only one margin of adjustment, when discussing policy. For example, opponents of the minimum wage seem to unilaterally focus on the possibility that raising wages will cause less employment. This is undoubtedly the case. […]
If you subscribe to the New (and old) Keynesian orthodoxy, you would tend to consider people that increase their demand for money balances (i.e. “hoarders”) to be somewhat akin to economic villains. The simplest version of the story is this: if people irrationally stop spending money on consumption goods and services (things that are produced) […]