Interest Rate Archive

Talk still cheap – ECB writes the check again

Lots of talk, particularly from Germany about the ECB not writing the check, due to (errant) inflation concerns. But to no avail. In fact, with the Rubicon crossing decision to haircut Greek bonds 50% for the private sector’s holdings, expect the check writing to continue to intensify. And expect economies to continue ...Read More

TAF size increased

[Skip to the end] As I’ve said all along, it needs to be in unlimited quantities with a set interest rate. It’s a pricing mechanism, not a quantity mechanism. They also need to relax collateral requirements to include commercial and residential whole loans, and all other legal bank assets of solvent banks. ...Read More

Refi madness

Homeowners rushing to refinance mortgages Federal Reserve’s surprise rate cut sparked a refinancing boom This week’s surprise rate cut by the Federal Reserve not only held Wall Street and investors in thrall, it’s also kicked into high gear a rush by homeowners across the country to refinance their mortgages at today’s lower ...Read More

Wray discussion

(an email with Randall Wray)  On Dec 11, 2007 10:49 PM, Wray, Randall <[email protected]> wrote: > Warren: very respectfully, I suggest you might reconsider both your model of the fed’s reaction function as well as the likely course of the “real” economy. > > Whatever the fed might have said about “fighting ...Read More