Remove Balance Sheet Remove Banking Remove Meeting Remove Productivity
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Rising COVID cases, falling economy

Tom Spencer

Since the start of February this year, the Fed has expanded its balance sheet by more than $2.4 To put that in context, the Fed was created in 1913, and its total balance sheet assets only reached $2.4 trillion in assets, but only 2 months to achieve the same amount of balance sheet expansion this year.

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Greek default in all but name - Tom Spencer consulting blog

Tom Spencer

IN OCTOBER 2011, private banks accepted a 50% writedown on Greek debt. Over the last few decades, countless risky financial products were sold to investors using harmless sounding terms like “credit default swap”, “mortgage backed security”, “special purpose vehicle” and “off-balance sheet financing”.

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10 Flaws with Mainstream Economics

Tom Spencer

For example, Amazon earned only modest profits from 2004 to 2015, choosing instead to focus on increasing market share and developing new products. Arguments that categorically favour free trade by reasoning that decreases in domestic production are more than offset by increases in consumer surplus overlook this point. Equilibrium.

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Nothing Magical About 2% Inflation Target Says Bernanke

MishTalk

Alas, his brain actually went into reverse: Bernanke Open to Raising Inflation Target Fed Struggles to Meet. Bernanke suggested that he would be open to an increase in the central bank’s 2 percent inflation target. “I Bernanke said he was not making a recommendation about how big the balance sheet ultimately should be.

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Ivory Tower Academics, Inflation, and Kindness

MishTalk

And long-term rates are what matter for capital investment, which is key to increasing the economy’s growth potential and raising productivity.". Then in an effort to bail out the banks (typically overweight bubble assets) the Fed steps on the gas again. Inflation Benefit 3 (?): "Balance sheet recession" might go away!

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Getting Your Deal Done

Martinka Consulting

I told him we would not meet in person until he talked to his wife about it. Business sellers please make it easy on your buyer, the bank, and your intermediary. Have a strong balance sheet. Pay them a fair wage, have a good culture, and keep productivity high. Guess what? We never met. Yep, the seller.

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Bulls and Bears Debate China: Property Bubble Expands Again; GDP Growth Picks Up; Economic Recovery Underway? No Says Michael Pettis

MishTalk

The South China Post reports US meltdown shadow looms large over China but observers believe Beijing could use its massive foreign reserves to save financial system if shadow banking activity spirals out of control. I do not see the risk of a big bank failure in China.". It is more liquidity risk rather than credit risk.