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Swiss Gold Referendum in Perspective

MishTalk

Switzerland Gold Initiative Halt all Swiss National Bank (SNB) gold sales Repatriate Swiss gold held in foreign vaults (UK and Canada) Establishes minimum 20% level of SNB Assets in gold Of course, central bankers everywhere are horrified by the idea they should have to do anything, especially hold sound assets.

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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. Layoffs, particularly in sales and trading, have accompanied lower profits. Investment bank Bear Stearns collapsed.

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Monetarists Accuse ECB of "Dangerous Game of Chicken"; The REAL Dangerous Game

MishTalk

The balance sheet of the European Central Bank has fallen by €553bn over the past year as banks repay money that they no longer want, either because ECB funds are too costly in a near-deflationary world or because lenders are being compelled by regulators to shrink their books. The US and China are withdrawing stimulus on purpose.

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Persistent Overoptimism Three Ways: Truckers, Fed Economists, Manufacturers

MishTalk

Sales of Class 8 heavy trucks are on pace for one of the best years in history - around 260,000 units in North America. 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).

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

MishTalk

Businesses are holding large amounts of cash on their balance sheets, which may suggest that greater risk aversion is playing a role. Housing While national home prices have been rising for a few years and home sales have improved recently, residential construction has remained quite soft.

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Shockingly Bad Fiscal Health of Chicago (and the Financial Engineering Chicago Uses to Hide that Fact)

MishTalk

Among other things, she handles the structuring and sale of bonds for schools across the state. Chicago used interest rate swaps on its 2003, 2005, 2007, and 2009 bond deals, apparently as part of a synthetic fixed rate strategy. ( It is not a balance sheet test, but a cash flow test.

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Reflections on 2013; What's Important, What's Not? What's Ahead?

MishTalk

Had I suggested in 2007 that the Fed balance sheet expansion of $75 billion a month would have been considered "tightening" people would have thought I was nuts. 96 Percent of Spaniards Believe Political Corruption is "Very High" Downturn Lingers House prices continued their decline, new lending declined retail sales declined.