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 Minsky noted that ‘euphoria’ might develop at this stage.

article thumbnail

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.

Banking 28
Insiders

Sign Up for our Newsletter

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

article thumbnail

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

MishTalk

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. the country’s balance sheet, and this will mean not a collapse but. 2009-12-09 Tech Ticker. oftwominds.

article thumbnail

Mish's Global Economic Trend Analysis: Ritholtz on Gold and on.

MishTalk

Barring some new developments — like all the gold in Fort Knox becoming irradiated — I do not expect to see a resumption of the 2001-11 uptrend. 2009-12-09 Tech Ticker. 2009-10-30 King World News. 2009-05-15: My Speech at Google. December 2009 (93). November 2009 (87). October 2009 (81).

Trends 63
article thumbnail

FOMC Minutes and Economic Projections: Dissent in Both Directions

MishTalk

Going forward, he viewed it as particularly important for the Committee to monitor price developments closely and to adapt its policy in response to incoming economic information. Participants also described their views regarding the appropriate path of the Federal Reserves balance sheet. 2009-12-09 Tech Ticker.

article thumbnail

Germany’s Midsize Manufacturers Outperform Its Industrial Giants

Harvard Business

Most of these companies are private and don’t publish their balance sheets. Since its founding our company has achieved growth every year, and only once, in 2009, did we experience a drop in revenue, of one percent. Outside of the school term, students apply their academic knowledge directly to real-world projects.

article thumbnail

What You Should Know About Dodd-Frank and What Happens If It’s Rolled Back

Harvard Business

Stress tests are a specific form of simulation developed by the Federal Reserve and other central banks to allow them to figure out how badly a given financial institution’s portfolio would hold up if there was a broad sell-off across a bunch of asset classes, or a specific kind of shock like what we suffered in 2008.

Banking 28