asterisk2a + raghuram   4

Andrew Mazzone Interviews James K. Galbraith
banks like property! more likely to lend to finance property than SME/SMB investment. because that investment is not propped up by the government. [...] min 6 subprime & credit bubble since 80's << behaviour of lenders [...] sensible people were given fraudulent debt instruments (no self-regulation, and regulators failed). [...] no prosecution because people who should have prosecuted those, didn't want to ruin their private future career. [...] min 15 - inequality and unemployment driven by inequality. [...] austerity is name of the game by the "establishment" - 20% of society that benefited from the bank bailout and reflation policy by central banks - [...] 19:15 - who do banks want to borrow in this environment?! austerity, aggregate demand shortfall, lack of confidence, volatility, uncertainty, credit bubble pain (liquidity trap) etc. [...] Solution ("an alternative way to the status quo, who made this mess): Fix Income Distribution thus Purchasing Power (aggregate demand, ie minimum wage), and restructure finance away from investment banking and speculation and derivatives towards real economy (ie tax heavily what is not real economy business) //&! James K. Galbraith on "Inequality and Instability: What's Ahead for the World Economy" - //&! James K. Galbraith - "The End of Normal" -
Gini  coefficient  income  distribution  1%  10%  20%  Super  Rich  property  bubble  London  rentier  rent-seeking  Help  to  Buy  Scheme  Help  to  Save  Funding  for  Lending  Scheme  underinvestment  infrastructure  investment  secular  stagnation  western  world  UK  USA  European  Union  deflation  deflationary  JAMESGALBRAITH  book  James  Kenneth  Galbraith  credit  bubble  credit  card  credit  card  debt  credit  boom  debt  servitude  speculation  speculative  bubble  speculative  bubbles  equity  bubble  reflate  reflation  GFC  recovery  austerity  Raghuram  Rajan  self-regulation  squeezed  middle  class  working  poor  Precariat  subprime  Wall  Street  regulation  regulators  Career  Politicians  politician  No  Representation  aggregate  demand  aggregate  demand  short-fall  liquidity  trap  retail  banking  investment  banking  ZIRP  NIRP  QE  Richard  Koo  inequality 
july 2016 by asterisk2a
Weltwirtschaft: BIZ warnt vor Krediten in Schwellenländern - SPIEGEL ONLINE
Die Bank für Internationalen Zahlungsausgleich sieht Alarmzeichen für Banken in vielen Schwellenländern. Die Kreditvergabe in China, Brasilien oder der Türkei habe ein bedrohliches Verhältnis angenommen, warnt die Notenbank. // &! Die Welt steuert auf den Bankrott zu (QE trap): Eine vorläufige Antwort: Das tieferliegende Problem besteht darin, dass sich die Weltwirtschaft insgesamt auf den Bankrott zubewegt - und das wird umso schneller gehen, je höher die Zinsen sind und je niedriger die Preissteigerungsraten.
BIS  credit  bubble  2015  China  BRIC  NPL  shadow  banking  junk  bond  creditrating  banking  crisis  excess  reserves  QE  ZIRP  NIRP  hot-money  currency-war  currency  debasement  currency  war  centralbanks  economic  history  hunt  for  yield  FOMO  speculative  bubbles  FX  reserves  Turkey  Brazil  Developing  World  Fed  distortion  unknown  unkown  unintended  consequences  Raghuram  Rajan  BOE  BOJ  Abenomics  PBOC  ECB  emerging  market  emerging  middle  class  AIIB  Asia  South  Africa  Latin  America  deflationary  deflation  secular  stagnation  western  Niall  Ferguson  globalization  globalisation  wage  stagnation  disposable  income  income  distribution  income  inequality  income  growth  income  mobility  income  gap  wage  growth  GFC  recovery  fiscal  policy  monetary  policy  austerity  Pact  European  Union  UK  USA  Richard  Koo  Joseph  Stiglitz  Paul  Krugman  dogma  ideology  Fed  mandate  inflation  targeting  New  Normal  bond  bubble  QE  trap  liquidity  trap  reflate  reflation  asset  bubble  asset  allocation  property  bubble  capital  allocation  QT  debt  monetisation  debt  monetization  trickle-down  economics  marginal  cost  economics  of  abundance  digital  economy  Software  Is  Eating  The  World  World  Bank  IMF  savings  glut  faultlines  structural  imbalance  Impediments  Super  Cycle  debt  ser 
september 2015 by asterisk2a
Raghuram Rajan - One-on-One: an investigative interview - 44th St. Gallen Symposium - YouTube
Relying too much on the wrong instrument, monetary policy, unconventional QE2 & 3 >> little domestic positive impact but spilled over much across the world! // consequences now seen (1) taper tantrum late 2014 & then summer 2015; china slow-down/equity crash & taper anticipation moves followed up by pulling money out of emerging/developing markets! financial market are divergent from domestic business market. cycles shifted apart slightly. investor, business, financial market & consumer confidence are not linked as tightly before! // financial markets are now global, business markets itself not as much! money can be pulled out digitally in an instance. // no net-positive 4 whole world. selfishness. long-run danger. unintended consequences, unknown unknowns. // global sub-optimal monetary policy // global system (monetary system) broke // uncertainty, unknown of taper. timing debate. game of chicken. volatility bc of lots of froth, distortion! // &!
Raghuram  Rajan  BIS  centralbanks  hot-money  currency-war  currency  debasement  currency  war  GFC  recovery  monetary  policy  QE  ZIRP  NIRP  excess  reserves  speculative  bubbles  reflate  reflation  economic  history  faultlines  credit  bubble  BRIC  2015  emerging  market  Developing  World  western  secular  stagnation  BOJ  Abenomics  PBOC  globalization  globalisation  financial  market  zombie  banks  savings  glut  business  confidence  business  investment  USA  UK  Europe  China  asset  bubble  asset  allocation  FOMO  hunt  for  yield  speculative  speculation  Super  Rich  1%  property  bubble  unconventional  monetary  policy  Fed  BOE  ECB  inflation  expectation  inflation  targeting  Fed  mandate  deflationary  deflation  fiscal  policy  irrational  exuberance  panic  hubris  unknown  unkown  unintended  consequences  Taper  book  structural  imbalance  Impediments  reserve  currency  fiat  currency  current  account  deficit  trade  deficit  structural  deficit  fiscal  deficit  fiscal  stimulus  Germany  austerity  dogma  ideology  credibility  Career  Politicians  Pact  Schuldenbremse  monetary  transmission  mechanism  monetary  stimulus  monetary  theory  monetary  system  complexity  incomplete  information  shadow  banking  uncertainty  volatility  distortion  financial  repression  governance 
september 2015 by asterisk2a
8 Reasons Why A New Global Financial Crisis Could Be On The Way -
Like any other bubble, it will only become one once it bursts. What is different in 2014 is that now central banks have a great tool to prevent real estate bubbles: Basel III and its countercyclical capital buffer. [...] Let us not forget the lessons of the Great War (we are now commemorating the 100-year anniversary): the butterfly effect can be deadly in politics. +++ "Raghuram Rajan, the governor of India's central bank, fears supereasy money from the world’s central banks is inflating assets and encouraging bad investments. [...] Long-term low interest rates and unorthodox programs to stimulate economies — like quantitative easing, or QE — could be laying the groundwork for more turmoil in financial markets, he argues. [...] With inflation not being strong, this can continue for some time until things are so stretched that any signs of inflation, and a rise in interest rates, could precipitate a fairly strong market reaction. Certainly [...] volatility hurts[.]
equity  bubble  asset  bubble  shadow  banking  China  Basel3  Basel  III  centralbanks  BIS  bubbles  bubble  butterfly  effect  unintended  consequences  complexity  unknown  unkown  unknown  unknowns  QE  ZIRP  hunt  for  yield  liquidity  trap  monetary  stimulus  monetary  policy  NIRP  negative  real  interest  rate  Raghuram  Rajan  zombie  banks  NPL  PIGS  geopolitics  Middle  East  ISIS  Islamic  State  Ukrain  Ukraine  radicalism  Putin  vladimirputin  Russia  Europe  USA  foreign  affairs  diplomacy  NATO  IMF  austerity  secular  stagnation  stagnation  deflation  deflationary  uncertainty  Wall  Street  volatility  Taper  distortion  trust  trustagent  confidence  BRIC  India  MINT  Frontier  Markets  Developing  World  emerging  market  flat  globalisation  globalization 
august 2014 by asterisk2a

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