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. However, on October 6 th 2008, the Federal Reserve also began paying interest to banks on their excess reserves stored at the Fed, and the quantity of these reserves reached over $1.5 It all seemed so clear.

article thumbnail

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 Trading Psychology Weblog. Trim Tabs - Bidermans Daily Edge.

Insiders

Sign Up for our Newsletter

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

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. The 2008 financial crisis saw Ben Bernanke, the then chairman of the Federal Reserve, providing money to banks across the United States following the collapse of the housing market and subsequent defaults of mortgage backed securities.

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. Policy makers are testing a new tool intended to improve their control of near-term borrowing costs. click on chart for sharper image.

Tools 76
article thumbnail

Draghi Announces ECB Exit From Easing Remains Far Off

MishTalk

On our policy stance, let me say that its been accommodative in the past, it is accommodative in the present time and will stay accommodative for the foreseeable future," Draghi said. Bernanke says the US economy is solid enough that the Fed can begin tapering its balance sheet purchases later this year. December 2008 (85).

article thumbnail

Persistent Overoptimism Three Ways: Truckers, Fed Economists, Manufacturers

MishTalk

UPS Freight , the fifth-largest LTL, reported tonnage off 10 percent (matching the record decline reported in the 2009 3Q during the depth of the Great Recession) and shipments down 5 percent year over year (the worst drop since 2008 fourth quarter). Overoptimism 2008-2010 The SEP growth forecast for 2008 never turned negative.

article thumbnail

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

MishTalk

Monetary policy is testing its outer limits. The normalisation of the policy stance has hardly started. Historical evidence shows that this rarely happens following a balance sheet recession. Accommodative monetary policy has had an ambiguous impact on the adjustment to lower debt ratios.