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Mish's Global Economic Trend Analysis: Reader Question: Does the.

MishTalk

Reader Question: Does the Fed Balance Sheet Properly Reflect QE Announcements? The feds balance sheet doesnt reflect it. The balance sheet was up $720 billion from Aug 1, 2012 to Aug 1, 2013 ($309B in treasuries and $393B in MBS) but that is only $60B per month. Feds Balance Sheet. QE History.

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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. Investment bank Bear Stearns collapsed. Lehman Brothers toppled. Investment banks used to trade using their own capital.

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

MishTalk

This has been labelled the “second phase of global liquidity”, to differentiate it from the pre-crisis phase, which was largely centred on banks expanding their cross-border operations. This share was higher than during the pre-crisis period from 2005 to mid-2007. Moreover, even the prospects for restoring trend growth are not bright.

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The Globalization Backlash Is Reverberating Through Boardrooms

Harvard Business

As a practical matter, for example, these changes in the global policy regime are forcing multinational corporations to scale back and sell parts of their international operations. According to the World Trade Organization, international trade this year will grow at its slowest pace since 2007. at the forefront.

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Persistent Overoptimism Three Ways: Truckers, Fed Economists, Manufacturers

MishTalk

Operating revenue decreased 15.9 In November 2007, the Federal Open Market Committee began releasing projections for real GDP growth four times per year in its Summary of Economic Projections (SEP). When the bubble bursts, the resulting debt overhang forces borrowers to repair their balance sheets via reduced spending or default.

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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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Inequality Isn’t Just Due to Market Forces — It’s Caused by Decisions the Boss Makes, Too

Harvard Business

In aggregate, such dynamics would operate in a similar manner as unions, systematically raising the wages for low and middle earners relative to high-earners, such that the wage gaps between them are narrowed, thereby lowering wage inequality. There was also variation in whether these capital investments led to workforce reductions.