asterisk2a + greenspan   12

The Economist asks: Has Alan Greenspan carried too much blame for the financial crash? by The Economist
Sebastian Mallaby // Repuplican Party loyalist Alan Greenspan. Appointed by Republican president. Later surprised, what they've got w him - as he got more and more politically skilled. The expert w machiavellian tendencies. [...] came at a disadvantage in early 2000's to tighten monetary policy post-dot.com recovery but did not so (monetary and fiscally (being advocate)); glass stegall - derivatives, gov support for property (tax breaks and deductions), ... "fed tried, fed did, fed failed" in end politics failed (Larry Summers, Bill Clinton shot the starting gun) to reign in investment banking (derivatives), ... &&& group think among economists/profession into believing in self-regulation!!! &&& bc he knew about the possible bubble still did not raise rates enough to prick property bubble. a shy person who liked to be loved.
economic  history  book  Alan  Greenspan  GFC  recovery  income  inequality  property  bubble  equity  Ben  Bernanke  Janet  Yellen  Fed  neoliberal  neoliberalism  USA  Paul  Volker  regulation  regulators  self-regulation 
october 2016 by asterisk2a
Alan Greenspan on Brexit, U.S. Economy, and Inflation (Full Interview) - YouTube
UK out of Euro Currency but part of free trade single market was best option on table. // lack of leadership for political union and fiscal union aka ever closer union. not just currency and trade union (free trade). // GET AT THE ROOT ISSUE; productivity, ageing population (entitlement crisis), stagnant wages, secular stagnation = desperate population // European banks some still burdened by sov debt crisis/NPL (= zombie banks) & NIRP & QE & lack of uptake in business & consumer loans. // no back-up to the ECB (balance sheet) yet. what happens if the EURO stops being a hard currency? get Greece out, is a liability. // EU can not go on in Status Quo indefinitely. ie funding southern states. States have to get on course of economic harmony! everyone has to give up something! // Precariat/Squeezed Middle Class/Social Mobility = creates desperate people. // Entitlements are a legal issues. Productivity and Growth Rates can't fund entitlements. = There will be a crisis. // Career Politicians won't touch it. // History (look at M2) this environment ends up in inflation. not time or data.
European  Union  Brexit  fiscal  Political  Union  ECB  Alan  Greenspan  Fed  Yanis  Varoufakis  Janet  Yellen  PIGS  sovereign  debt  crisis  secular  stagnation  productivity  gap  disposable  income  discretionary  spending  ageing  population  current  account  deficit  budget  deficit  GFC  entitlement  spending  Abenomics  monetary  policy  fiscal  policy  pension  obligation  babyboomers  Baby  Boomers  immigration  NIRP  ZIRP  QE  economic  history  Germany  Angela  Merkel  BOE  Mark  Carney  rising  middleclass  squeezed  middle  class  working  poor  Precariat  populism  demagogue  demagogy  Donald  Trump  western  world  savings  rate  Gini  coefficient  social  mobility  income  mobility  triple-lock  pension  pension  fund  pension  scheme  democracy  Career  Politicians  politician  output  gap  M2  inflation  targeting  M3  commodity  prices  global  economy 
june 2016 by asterisk2a
The real truth about the 2008 financial crisis | Brian S. Wesbury | TEDxCountyLineRoad - YouTube
bankers are greedy & excess speculation, is the story. Fed controls short-term interest rate through interest rate setting/Fed meetings based on fundy of American economy, // NIRP (greenspan put) post dot.com, distorts market, decision makers decisions. housing bubble w help of NIRP after dot.com & home-ownership campaign in bush years (fiscal stimulus/subsidies) 2 push that "asset." Not "home" to live in. // banks got too big to fail (their balance sheet/lending book) as liabilities (toxic assets - real downside unknown (due to complexity and day to day changes during crisis years), like CDO/CDS etc) overtook book, overall, value. Banking being actually insolvent, but how insolvent one doesn't know. Thus bad bank idea. ACCOUNTING. // Paul Volker raised rates ... was able, because USA (private household, banks, corporates) were not in a balance sheet recession. Problem was endogenous. // Deregulation + Lax accounting contributed to GFC greatly, unable to value banks books.
GFC  economic  history  fractional  reserve  banking  financial  crisis  monetary  theory  systemicrisk  Greenspan-Put  NIRP  ZIRP  negative  real  interest  rate  interestrate  dot.com  reflation  reflate  balance  sheet  recession  deleveraging  debtoverhang  savings  rate  leverage  alangreenspan  greenspan  Ben  Bernanke  benbernanke  distortion  housing  market  accounting  too  big  to  jail  toobigtofail  TBTF  financial  market  financial  incentive  speculative  bubbles  speculative  speculation  hunt  for  yield  asset  allocation  asset  bubble  TARP  subprime  QE  stresstest  timgeithner  henrypaulson  economic  model  economic  damage  macroeconomic  policy  fiscal  policy  monetary  policy  history  paulvolcker  complexity  incomplete  information  business  confidence  consumer  confidence  confidence  banking  crisis  zombie  banks  mark-to-market  Janet  Yellen 
july 2015 by asterisk2a
Alan Greenspan on what's wrong with the world economy - Newsnight - YouTube
secular  stagnation  alangreenspan  Alan  Greenspan  recovery  GFC  2014  ZIRP  liquidity  trap  Structural  Impediments  imbalance  faultlines  NIRP  QE  monetary  policy  fiscal  policy  austerity  economic  history  Debt  Super  Cycle  sovereign  crisis  infrastructure  investment  business  investment  Europe  PIGS  monetary  transmission  mechanism  business  confidence  confidence  trust  trustagent  Germany  policy  folly  policy  error  IMF  Makers  Pact  fiscal  stimulus  Career  Politicians  short-term  thinking  short-term  view  Angela  Merkel  Wolfgang  Schäuble  equity  bubble  Thomas  Piketty  book  Jens  Weidmann 
october 2014 by asterisk2a
Today's Good News From Japan Is Terrible - Bloomberg View
uroda is finding that his monetary largess isn't boosting credit creation as hoped. Inflation, yes, as Japan imports more energy with a weaker yen. But the kind of monetary multiplier effect the BOJ hoped to unleash by now remains elusive, as the experience of Mizuho Financial Group and Japan’s other two biggest banks demonstrate. All three are forecasting a drop in earnings for this year as loan growth loses momentum and returns from stock investments wane. Kuroda is a respected economist who's staked his entire legacy on ending Japan's deflation. What's more, Prime Minister Shinzo Abe isn't coming through with sweeping structural reforms to boost consumer demand and business confidence. However unfairly, that puts the onus on Kuroda. It also places Japan in uncharted territory. Will bond traders sit back passively if the BOJ adds lots more stimulus to the economy? It's impossible to tell. + http://www.ofce.sciences-po.fr/blog/abenomics-new-monetary-policy/
BOJ  QE  ZIRP  Japan  lostdecade  lost  decade  2014  deflationary  deflation  trust  trustagent  confidence  Kuroda  Put  Greenspan-Put  Greenspan  Put  economic  history  monetary  transmission  mechanism  monetary  theory  fiscal  policy  monetary  policy  unconventional  monetary  policy  bond  bubble  unintended  consequences  unknown  unknowns  complexity  Debt  Super  Cycle  sovereign  crisis  Nikkei  JPY  faultlines  global  imbalances  Fed  Taper  Janet  Yellen  Abenomics  Shinzo  Abe  fiscal  stimulus  accommodative  monetary  policy  liquidity-trap  liquidity  trap 
may 2014 by asterisk2a
Guest Post: The Unwelcome Impact of Interventionist Monetary Policy In The US | ZeroHedge
Mandelbrot's ideas also apply to higher moments: the sampling error of the variance is determined by the kurtosis (degree of "fat tails") and so on. My plot illustrates the cumulative kurtosis, computed after Mandelbrot, of the daily change in US three month treasury bills. Ever since the arrival of Alan Greenspan's post '87 crash crisis management regime, this plot shows a systematic and steady march upwards in the kurtosis of changes in US interest rates. I find this chilling. This means that, if the truth is as the evidence suggests, that it is not possible to accurately determine the risk of a portfolio of bonds because it is not possible to make reliable measurements of the variance of interest rates. i.e. The whole enterprise of bond portfolio risk management is intrinsically unreliable.
monetary  policy  unintended  consequences  greenspan  endgame  intervention 
september 2011 by asterisk2a
Wall Streets Euthanasia of Industry | Michael Hudson
Last weekend’s New York Times magazine had an interview with Sheila Bair, whose five-year term heading the Federal Deposit Insurance Corp. (FDIC) expired last week. Now she can begin to tell what happened. She said that Mr. Obama promised her that he would try to prevent the mortgage frauds that were occurring, especially in subprime mortgages, and support better bank regulation. But then she would learn, just an hour before he gave a speech, that he would have changed the draft that she had seen, and took out what he’d promised her. The rewrites apparently were done mainly by Tim Geithner, who acts as a lobby for the big bank contributors. Instead of running the Treasury to benefit the U.S. economy, he’s benefiting his Wall Street constituency. Significantly, he was a protégé of Clinton Treasury Secretary Robert Rubin, who gave the name “Rubinomics” to pro-Wall Street opposition to bank regulation and a dismantling of public control over the banking system.
sheilabair  lobby  lobbyist  Lobbying  timgeithner  robertrubin  larrysummers  greenspan  Dodd-Frank  subprime  regulation  reform  wallstreet  presidency  barackobama  oligopol  pharma  industry 
july 2011 by asterisk2a
Pension Pulse: Rottenness of the World?
On that gloomy note, I leave you by recommending Joe Nocera's New York Times article, Sheila Bair’s Bank Shot. Like Brooksley Born, Ms. Bair tried to do the right thing but she realized her efforts are futile. The reality is that no matter what measures regulators implement to reign in banks, the rottenness of the world always prevails.
society  culture  inequality  wallstreet  lobby  lobbyist  Lobbying  interestgroups  money  power  politics  accountability  fraud  taxevasion  capitalism  corporate  crisis  sovereign  debt  GFC  sheilabair  brooksleyborn  larrysummers  greenspan  robertrubin  policy  folly 
july 2011 by asterisk2a
Fraud Caused the 1930s Depression and the Current Financial Crisis | zero hedge
Professor William K. Black writes:

The original Pecora investigation documented the causes of the economic collapse that led to the Great Depression. It ... established that conflicts of interest and fraud were common among elite finance and government officials.

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James Galbraith recently said that "at the root of the crisis we find the largest financial swindle in world history", where "counterfeit" mortgages were "laundered" by the banks.

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The decisive role that "accounting control frauds" played in driving the current crisis is clear. The FBI warned of an "epidemic" of mortgage fraud in 2004 and predicted that it would cause an economic crisis if it were not stopped. The mortgage lending industry's own experts reported that "liar's" loans were "an open invitation to fraudsters" and fully warranted their name -- "liar's" loans -- because fraud was endemic in such loans.
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HISTORY RHYMES.
fraud  USA  economy  gwbush  politics  FHFA  FBI  2010  greatrecession  greatdepression  economists  foreclosure  greenspan  alangreenspan  ZIRP  fiscal  policy  history 
october 2010 by asterisk2a
Google's Eric Schmidt on why bankers deserve little sympathy and Obama does - Telegraph
"The number of people who were hurt by the activities of the financial industry is so large, it is very hard to have a lot of sympathy with that industry given the high-flying nature of its behaviour," he said.
banking  ericschmidt  recession  google  fanniemae  freddiemac  history  greenspan  monetary  policy  politics  economy  economics  moneysupply  financialmarket  causes  cause  creditcrunch  deficit  britian  uk  debt  dollar  pound  usa  inflation 
january 2010 by asterisk2a

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