How large a problem is moral hazard caused by the Fed helping out troubled bank during financial crises? Pretty large, at least according to Jeffrey Lacker, President of the Federal Reserve Bank of Richmond. One argument for central bank credit
Reprinted from the Pembroke Observer Since the collapse of Lehman Brothers investment bank in 2008, central banks around the world have created trillions of additional dollars, yen, euros and renminbi. In the immediate aftermath of Lehman’s bankruptcy other banks, unsure
Speaking at an IMF sponsored event, Fed Chairwoman Janet Yellen warned of growing risk factors in several asset classes. Unfortunately, she doesn’t see the most aggressive monetary policy in American history as the cause. Analysts said Yellen was pushing back
Republished from Liberty Blitzkrieg Michael Krieger | Posted Monday Jun 23, 2014 at 10:58 am *Update: A couple of people have made a stink about this post claiming that it is misleading because the prior agreed upon repatriation schedule has not actually changed. That said, anyone
Nothing gets the liberal press’s pom-poms twirling like the threat of bank regulation. Ever since the financial crisis in 2008 and subsequent bailout of Wall Street, progressive pols have had their sights set on the banking class. The animosity makes
Transcribed from Janet Yellen’s Exclusive Interview Was the Federal Reserve justified in bailing out the entire financial system in 2008-9? This is why the Fed was originally set-up in 1913. It is to provide liquidity to the financial system as a
Reprinted from DetlevSchlichter.com The twentieth century witnessed the shift from the classical order of free markets and hard, non-political money – epitomized by the gold standard – to fully elastic money and credit markets under the control of state central banks.
Reprinted from Mises.org After the stock market collapse of 2008 and a decline of 3.4 percent for U.S. GDP in 2009, investors rushed to stash funds in emerging markets (EM) where economies were growing at a 3.1 percent annual rate.
Reprinted from LewRockwell.com Presentation by David A. Stockman to The Committee for the Republic, February 11, 2014 Flask in hand, Boris Yelstin famously mounted a tank outside the Soviet Parliament in August 1991. Presently, the fearsome Red Army stood down—an
Leonardo DiCaprio has been lambasted for romanticizing the life of the real-life “wolf” he recently won best actor for at the Golden Globes. Jordan Belfort, the founder and president of New York investment banking firm Stratton Oakmont, conned small-time investors
There are many limitations to the extent to which banks can expand credit. The main ones are (1) the limitation imposed by required reserves, (2) the limitation imposed by capital leverage ratios, and (3) the limitation imposed by liquidity requirements.
Reprinted from Mises.org On Monday, former Fed official Andrew Huszarpublicly apologized to the American public for his seminal role in executing the Quantitative Easing (QE) program, a program he characterizes as “the greatest backdoor Wall Street bailout of all time,” and
Reprinted from Laissez Faire Today Now, this is sheer entertainment. The Chicago branch of the Federal Reserve has addressed the great monetary question of our day. A researcher has taken a detailed look at the prospects for market-based crypto-currency, with a special