Sound Banking
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“Wells Says New Regulations to Cost $530M”
“Wells Fargo said Monday that new financial regulation will cost the San Francisco bank $530 million in lost revenue this year. The bank expects changes to its overdraft practices and other new policies will reduce its fee income $225 million, after tax, in the third quarter and $275 million in the fourth quarter.” Read more.…
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“Who Will Regulate AIG? Who Knows”
“There is a section of today’s second quarter filing from AIG that reads like a “Choose Your Own Adventure” book. For those out there who need a reminder, in Choose Your Adventure books readers get to choose what happens to the main character by deciding to turn to one page or another. “If you decide…
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Tax and Spend
On Wednesday, August 4, Secretary of Treasury Timothy Geithner debated the Bush tax cuts with Douglas Hotz-Eakin, president of the American Action Forum. It was not much of a debate. With Geithner and Holtz-Eakin joined by the third panelist, John Podesta, president and CEO of Center for American Progress, and a time constraint of 45…
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“Bernanke Says Rising Wages Will Lift Spending”
“Investors and the public have been closely watching signals about the economy and the Fed’s possible policy moves to address problems. While the United States has “a considerable way to go” for a full recovery, “rising demand from households and businesses should help sustain growth,” Mr. Bernanke said on Monday in a speech in Charleston,…
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Bullard’s Bipoloar Fed Strategy
“Forcing banks to take undue risk for the sake of the economy would result in banks recklessly engaging in the behavior that precipitated the financial crisis in the first place! Banks could still decide not to lend to small businesses and consumers, preferring to party like its 2007 by engaging in LBOs, M&A financing, etc.…
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“Alan Blinder and Mark Zandi’s Keynesian Black Box”
“In a recent Wall Street Journal column, Princeton economist Alan Blinder wonders why 64 percent of Americans do not believe the $849 billion “fiscal stimulus” bill “saved or created” many jobs. “The main reason,” he explains, “appears to be that the White House’s January 2009 forecast was too optimistic — projecting, for example, an unemployment…
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“Inflation and Deficit Spending Revisited”
“In a recent article in this journal, Giffin, Macomber, and Berry (1981), hereafter referred to as GMB, attempt to test the hypothesis that larger deficits cause increases in the money supply and hence inflation. To test the debt monetization hypothesis, they analyze U.S. data for the period 1959-79. Finding no evidence that debt monetization causes…
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“Budget Deficits and Inflation”
“The sharp rise in the rate of inflation in 1973, after two years of diminishing rates, was a great surprise to many. What was the primary cause? Many rea-sons have been advanced to explain this change, some of them logical, and some not. Most of the explanations are based, in one way or another, on…
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“Bank of England’s Mervyn King Warns Over Inflation”
“Prices rises have consistently defied the Bank’s expectations of a slowdown, adding to pressure on households as wage growth remains weak and the Government introduces a strict austerity package. The Bank’s rate-setters are charged with keeping inflation at 2% but the Consumer Prices Index benchmark has been above 3% throughout the year. However, addressing a…
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“Fannie, Freddie Remain Unfixed”
“With much fanfare, President Obama has signed the Dodd-Frank financial reform bill, promising the most sweeping reform since the Great Depression. This massive bill extends regulation to many parts of the U.S. economy, and adds new open-ended bureaucracies that expand the powers of government over a wide variety of financial firms. Does the bill really…
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“Wells Says New Regulations to Cost $530M”
“Wells Fargo said Monday that new financial regulation will cost the San Francisco bank $530 million in lost revenue this year. The bank expects changes to its overdraft practices and other new policies will reduce its fee income $225 million, after tax, in the third quarter and $275 million in the fourth quarter.” Read more.…
-
“Who Will Regulate AIG? Who Knows”
“There is a section of today’s second quarter filing from AIG that reads like a “Choose Your Own Adventure” book. For those out there who need a reminder, in Choose Your Adventure books readers get to choose what happens to the main character by deciding to turn to one page or another. “If you decide…
-
Tax and Spend
On Wednesday, August 4, Secretary of Treasury Timothy Geithner debated the Bush tax cuts with Douglas Hotz-Eakin, president of the American Action Forum. It was not much of a debate. With Geithner and Holtz-Eakin joined by the third panelist, John Podesta, president and CEO of Center for American Progress, and a time constraint of 45…
-
“Bernanke Says Rising Wages Will Lift Spending”
“Investors and the public have been closely watching signals about the economy and the Fed’s possible policy moves to address problems. While the United States has “a considerable way to go” for a full recovery, “rising demand from households and businesses should help sustain growth,” Mr. Bernanke said on Monday in a speech in Charleston,…
-
Bullard’s Bipoloar Fed Strategy
“Forcing banks to take undue risk for the sake of the economy would result in banks recklessly engaging in the behavior that precipitated the financial crisis in the first place! Banks could still decide not to lend to small businesses and consumers, preferring to party like its 2007 by engaging in LBOs, M&A financing, etc.…
-
“Alan Blinder and Mark Zandi’s Keynesian Black Box”
“In a recent Wall Street Journal column, Princeton economist Alan Blinder wonders why 64 percent of Americans do not believe the $849 billion “fiscal stimulus” bill “saved or created” many jobs. “The main reason,” he explains, “appears to be that the White House’s January 2009 forecast was too optimistic — projecting, for example, an unemployment…
-
“Inflation and Deficit Spending Revisited”
“In a recent article in this journal, Giffin, Macomber, and Berry (1981), hereafter referred to as GMB, attempt to test the hypothesis that larger deficits cause increases in the money supply and hence inflation. To test the debt monetization hypothesis, they analyze U.S. data for the period 1959-79. Finding no evidence that debt monetization causes…
-
“Budget Deficits and Inflation”
“The sharp rise in the rate of inflation in 1973, after two years of diminishing rates, was a great surprise to many. What was the primary cause? Many rea-sons have been advanced to explain this change, some of them logical, and some not. Most of the explanations are based, in one way or another, on…
-
“Bank of England’s Mervyn King Warns Over Inflation”
“Prices rises have consistently defied the Bank’s expectations of a slowdown, adding to pressure on households as wage growth remains weak and the Government introduces a strict austerity package. The Bank’s rate-setters are charged with keeping inflation at 2% but the Consumer Prices Index benchmark has been above 3% throughout the year. However, addressing a…
-
“Fannie, Freddie Remain Unfixed”
“With much fanfare, President Obama has signed the Dodd-Frank financial reform bill, promising the most sweeping reform since the Great Depression. This massive bill extends regulation to many parts of the U.S. economy, and adds new open-ended bureaucracies that expand the powers of government over a wide variety of financial firms. Does the bill really…
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