Federal Reserve

The Broken-Window Fallacy Is Still Alive And Well

As in the wake of every disaster, pundits and politically biased economists - including Larry Summers who declared Japan's 2011 Tsunami would boost economic growthwill wax elequently on how Harvey will end up being a boon for "the economy." As usual, these types of talking heads forget Frederic Bastiat at their own peril...

From Here On... "Things Get Jiggy"

"Forward from here, things get jiggy. The nation faces a pile-up of events as we turn the corner on summer and head into the spook-house of autumn..."

The Week's Key Events: All Eyes On The ECB

With the US markets closed today, market events this week will be dominated by G10 central bank meetings, among which the ECB stands out. In the US, the key economic release this week is ISM non-manufacturing on Wednesday, while several Fed officials are scheduled to speak this week.

How To Make The Financial System Radically Safer

The best way to regulate banks is to turn over regulatory control to the very exacting, and unsympathetic, order of the market. That is to have little to no regulations and one very specific and uncompromising provision: "There will be absolutely, unconditionally, categorically, no government funded bailouts."

Is A US Default Imminent: Liquidation Panic Grips T-Bills Market

While the politicians and the mainstream media are playing down any concerns about the US debt ceiling, Treasury Bill market participants are seeing chaos as the yield curve has snapped across the Sept-Oct divide with panic-buying in bills that mature ahead of the September-end (Q3-end liquidity needs), and dumping of October bills.

Yes, You Should Be Concerned With Consumer Debt

The mirage of consumer wealth has been a function of surging debt levels. “Wealth” is not borrowed, but “saved,” and this is a lesson that too few individuals have learned. Until the deleveraging cycle is allowed to occur, and household balance sheets return to more sustainable levels, the attainment of stronger, and more importantly, self-sustaining economic growth could be far more elusive than currently imagined.