Financial Markets
-
•
Is it a LOLR? No, It’s a Trap
“The reason this is infuriating is that we are being told that taxpayers should be willing to double down, to reimburse even-more-careless depositors for their negligent inattention to risk.” ~ Michael C. Munger
-
•
FDIC: No Savior Then or Now
“It is not clear that some sort of enhanced stockholder liability has yet returned to the Overton Window, but it is possible that Americans will point out the hypocrisy of the Biden administration’s raising taxes on the rich with one hand while bailing them out with the other.” ~ Robert E. Wright
-
•
Bottle Rockets and Falling Skies: How SVB Crashed and Why It’s Not the End of the World
“Their failure to take steps to hedge against imminent deflationary policy was grossly negligent, and ultimately unlikely to be repeated by bank managers whose responsibilities extend beyond a specific boutique market.” ~ Tarnell Brown
-
•
Silicon Valley Bank: Bespoke, Woke, and Restoked?
“In a chorus which has become familiar, the S&P 500 futures just leapt upward, as the dollar fell with equal fervor. Relief for equities, a snub to the greenback. At 7:45pm EDT on an otherwise quiet Sunday night in March, this is what that kicking the can down the road looks like.” ~ Peter C.…
-
•
Has the Discount Window Mystery been Solved?
“We won’t know for another twelve or fourteen months whether Silicon Valley Bank (or any of the other banks being thrown overboard today) were the ones borrowing at the Fed’s discount window. But it is increasingly likely that whatever firm(s) it was, exigency was the driver.” ~ Peter C. Earle
-
•
ESG as an Artifact of ZIRP
“Although it is unlikely to disappear completely, the ESG fad is probably past the crest of its popularity. It’s time again for firms to focus, singularly and completely, on the inestimable task of making money.” ~ Peter C. Earle
-
•
What’s Up (and Down) With the Economy?
“I would keep my eye on the LEI (and AIER’s equivalent) but pay special attention to the manufacturing variables. Outside of the LEI, I would also carefully watch real wage trends and its downstream knockoffs (credit card and other debt and defaults, and the personal savings rate).” ~ Robert E. Wright
-
•
Government Siphon Targets Corporate Stock Buybacks
“This particular increase in the corporate repurchase excise tax seems unlikely to pass, but some form of it probably will in the future. When it does, another market function will have fallen prey to the unslakable thirst of the insatiable American state.” ~ Peter C. Earle
-
•
Rising Use of the Fed’s Discount Window Raises Questions
“The fact that the amounts being borrowed at the discount window are rising in an oscillatory fashion with progressively higher ‘highs’ and higher ‘lows’ hints, while not conclusively, that the amounts being borrowed are increasing as the Fed increases rates.” ~ Peter C. Earle
-
•
Risky Business: A Review
“Risky Business will appeal to readers more interested in selection markets than in real-world insurance products, and to people with a high tolerance for ahistorical assumptions about the need for detailed insurance regulation and other government market interventions.” ~ Robert E. Wright
-
•
Is it a LOLR? No, It’s a Trap
“The reason this is infuriating is that we are being told that taxpayers should be willing to double down, to reimburse even-more-careless depositors for their negligent inattention to risk.” ~ Michael C. Munger
-
•
FDIC: No Savior Then or Now
“It is not clear that some sort of enhanced stockholder liability has yet returned to the Overton Window, but it is possible that Americans will point out the hypocrisy of the Biden administration’s raising taxes on the rich with one hand while bailing them out with the other.” ~ Robert E. Wright
-
•
Bottle Rockets and Falling Skies: How SVB Crashed and Why It’s Not the End of the World
“Their failure to take steps to hedge against imminent deflationary policy was grossly negligent, and ultimately unlikely to be repeated by bank managers whose responsibilities extend beyond a specific boutique market.” ~ Tarnell Brown
-
•
Silicon Valley Bank: Bespoke, Woke, and Restoked?
“In a chorus which has become familiar, the S&P 500 futures just leapt upward, as the dollar fell with equal fervor. Relief for equities, a snub to the greenback. At 7:45pm EDT on an otherwise quiet Sunday night in March, this is what that kicking the can down the road looks like.” ~ Peter C.…
-
•
Has the Discount Window Mystery been Solved?
“We won’t know for another twelve or fourteen months whether Silicon Valley Bank (or any of the other banks being thrown overboard today) were the ones borrowing at the Fed’s discount window. But it is increasingly likely that whatever firm(s) it was, exigency was the driver.” ~ Peter C. Earle
-
•
ESG as an Artifact of ZIRP
“Although it is unlikely to disappear completely, the ESG fad is probably past the crest of its popularity. It’s time again for firms to focus, singularly and completely, on the inestimable task of making money.” ~ Peter C. Earle
-
•
What’s Up (and Down) With the Economy?
“I would keep my eye on the LEI (and AIER’s equivalent) but pay special attention to the manufacturing variables. Outside of the LEI, I would also carefully watch real wage trends and its downstream knockoffs (credit card and other debt and defaults, and the personal savings rate).” ~ Robert E. Wright
-
•
Government Siphon Targets Corporate Stock Buybacks
“This particular increase in the corporate repurchase excise tax seems unlikely to pass, but some form of it probably will in the future. When it does, another market function will have fallen prey to the unslakable thirst of the insatiable American state.” ~ Peter C. Earle
-
•
Rising Use of the Fed’s Discount Window Raises Questions
“The fact that the amounts being borrowed at the discount window are rising in an oscillatory fashion with progressively higher ‘highs’ and higher ‘lows’ hints, while not conclusively, that the amounts being borrowed are increasing as the Fed increases rates.” ~ Peter C. Earle
-
•
Risky Business: A Review
“Risky Business will appeal to readers more interested in selection markets than in real-world insurance products, and to people with a high tolerance for ahistorical assumptions about the need for detailed insurance regulation and other government market interventions.” ~ Robert E. Wright