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Fed Balance Sheet vs. Stock Market; Will QE Cause Inflation?

MishTalk

Fed Balance Sheet vs. Stock Market; Will QE Cause Inflation? Fed Balance Sheet vs. Stock Market. The risk premiums of risky securities have become unsustainably compressed in the process, and the Feds balance sheet has metastasized to $3.5 Minsky noted that ‘euphoria’ might develop at this stage.

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How the Great Recession Changed Banking

Harvard Business

The Great Recession of 2007 to 2009 was under way. That strengthened investment banks’ balance sheets by forcing them to scale back and to change the nature of the risks they take. They are subject to more rigorous stress testing by regulators and have to develop plans aimed at ensuring that they can recover from a crisis.

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BIS Slams the Fed; Ridiculous Question of the Day: "Is The Fed Going To Attempt A Controlled Collapse?"

MishTalk

This share was higher than during the pre-crisis period from 2005 to mid-2007. Historical evidence shows that this rarely happens following a balance sheet recession. In the syndicated loan market, for instance, credit granted to lower-rated leveraged borrowers (leveraged loans) exceeded 40% of new signings for much of 2013.

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Mish's Global Economic Trend Analysis: Michael Pettis on the China.

MishTalk

The most important effect is likely to be on demand for wealth management products. Chinese financial markets often seem less volatile than one would expect for a poor, developing country, largely because of administrative measures that intentionally or unintentionally suppress normal volatility. December 2007 (69).

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Fed Minutes Show Majority Believe "Marginal Efficacy of QE Likely Declining"; Economy Turned the Corner?

MishTalk

The projected improvement in economic activity was expected to be supported by highly accommodative monetary policy, diminished fiscal policy restraint, and a pickup in global economic growth, as well as a further easing of credit conditions and continued improvements in household balance sheets.

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The Globalization Backlash Is Reverberating Through Boardrooms

Harvard Business

According to the World Trade Organization, international trade this year will grow at its slowest pace since 2007. Imports among the world’s 20 largest economies have fallen as a share of their gross domestic product for four consecutive years. at the forefront.

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Reflections on "Uncertainty"; Yellen Expects Rates Hikes but "Uncertain" about Growth, Jobs, Inflation, Wages

MishTalk

It appears a number of times (in various forms) in Fed Chair Janet Yellen's speech on Recent Developments and the Outlook for the Economy at the City Club of Cleveland, Cleveland, Ohio. Outlook for the Economy The latest estimates show that both real GDP and industrial production actually edged down in the first quarter of this year.