article thumbnail

2008 Financial Crisis – Causes and historical context

Tom Spencer

Many an economics and finance course later, I see that the layers of complexities to the 2008 financial crisis are innumerable. This is because the initial trigger for the crisis was reliance by major banks, particularly those in the United States, on mortgage backed securities as collateral. It all seemed so clear.

article thumbnail

Millennials Mired in "Wealth Gap" as Older Americans Gain; Housing Crash Continues to Overshadow Young Families' Balance Sheets

MishTalk

For households headed by someone 40 years old or younger, wealth adjusted for inflation remains 30 percent below 2007 levels on average, according to research by economists at the Federal Reserve Bank of St. The average value of housing on young families’ balance sheets remains about 35 percent below its 2007 level, the St.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

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

MishTalk

Balanced Budget Ammendment Sign the Balanced Budget Petition. 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

article thumbnail

New Tools! More Pure Bank Profit!

MishTalk

Inquiring minds are monitoring the Fed''s Balance Sheet. One more week like this and the FED balance sheet will be $1 trillion more than last year at this time. Bank profits are. Banks cannot use the money and are not lending it. click on chart for sharper image. Breakdown From Year Ago. Excess Reserves.

Tools 76
article thumbnail

The age old tale of financial crises

Tom Spencer

The story of the 2008 financial crisis begins somewhere shortly after the death of Jesus Christ himself. By distributing 100 million sesterces from the imperial bank to reliable bankers around the Empire and dropping interest rates to zero for three years, Tiberius saved Rome and the other affected nations of Egypt, Greece, and France.

article thumbnail

European Banks Dump Massive Amounts of Subordinated Debt on Investors

MishTalk

The Financial Times notes a Big rise in subordinated debt issuance by EU banks Banks have taken advantage of yield-chasing investors to issue $90.7bn of subordinated debt for the year to date, a 41 per cent increase compared to the same period in 2012. It relates to bail-in procedures in the alleged European "banking union".

Banking 71
article thumbnail

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

MishTalk

Balanced Budget Ammendment Sign the Balanced Budget Petition. Reader Question: Does the Fed Balance Sheet Properly Reflect QE Announcements? The feds balance sheet doesnt reflect it. So if QE is $85B a month, where is it and why doesnt it show up in the Feds balance sheet.". Feds Balance Sheet.