Monthly Archive:: March 2009

Eurozone- quantitative easing VS fiscal adjustment

[Skip to the end] Thanks, they all have it wrong regarding quantitative easing. Net financial assets of the non government sectors remain unchanged. There is no ‘monetary’ consequence apart from the resulting somewhat lower long term interest rates. And the idea that it helps delays fiscal responses that do help. Europe needs ...Read More

2009-03-31 USER

[Skip to the end] ICSC UBS Store Sales YoY (Released 7:45 EST) ICSC UBS Store Sales WoW (Released 7:45 EST) Redbook Store Sales Weekly YoY (Released 8:55 EST) Redbook Store Sales MoM (Released 8:55 EST) ICSC UBS Redbook Comparison TABLE (Released 8:55 EST) S&P Case Shiller Home Price Index (Released 9:00 EST) ...Read More

Review of the recession and how to end it

[Skip to the end] The problem is suboptimal output and employment which is evidence of a lack of aggregate demand.   Less important what caused the drop in aggregate demand The end of the subprime expansion in 2006 reduced the demand for housing   The wind down of the one time Q2 ...Read More

Mosler plan vs Geithner plan

[Skip to the end] The Mosler plan to better accomplish what the Geithner plan has attempted to do: Targeted credit default insurance between the FDIC and the banks Here’s how it works: Any bank could apply for FDIC credit default insurance. The bank would submit the securities it wants insured to the ...Read More

Geithner backwards again on banks, risk, and recovery

[Skip to the end] No we don’t. We ‘get out of this’ with a fiscal adjustment sufficient to restore output and employment, and as credit worthiness improves lending picks up. Banking is necessarily pro cyclical Tim, get over it! Geithner Says Some Banks to Need ‘Large Amounts’ of Assistance by Ryan J. ...Read More

Obama for or against unions?

[Skip to the end] Didn’t we just hear a speech from our President about the need to strengthen unions? White House to set GM, Chrysler deadlines: report Mar 27 (Reuters) — The Obama administration will set a strict deadline for General Motors Corp and Chrysler LLC to reach cost-cutting deals with creditors ...Read More

2009-03-30 CREDIT

[Skip to the end] IG On-the-run Spreads (Released 5:02 EST) IG6 Spreads (Released 5:02 EST) IG7 Spreads (Released 5:02 EST) IG8 Spreads (Released 5:02 EST) IG9 Spreads (Released 5:02 EST) IG On-the-run Spreads (Mar 30) [top][end] IG6 Spreads (Mar 30) [top][end] IG7 Spreads (Mar 30) [top][end] IG8 Spreads (Mar 30) [top][end] IG9 ...Read More

Re: Financial services

[Skip to the end] (email exchange) Yes! >    >   Sounds like Krugman has been reading your blog: >    The Market Mystique by Paul Krugman Mar 26 (NY Times) — But it has become increasingly clear over the past few days that top officials in the Obama administration are still in the grip of ...Read More

Financial services

[Skip to the end] >    >   Sounds like the IMF & misguided bankers everywhere are systematically >   degrading everyone’s economy. >    Yes! >    >   Do enough people anywhere understand national currency systems? >    No! >    >   Are ALL financial service industries more trouble than they’re worth? >    Best i can tell. There probably are a few ...Read More

Student exam at Wartburg College

[Skip to the end] Congrats, Professor Fullwiler- there are at least some students learning how the monetary system actually works! EC342 Winter 2009 Case Study 5 The following quotes from rather famous figures or institutions are all completely incorrect regarding the nature of government debt and deficits according to the modern money ...Read More