Fred Mishkin

Columbia Business School Dean Glenn Hubbard's Outside "Consulting And Advisory Relationships"

U.S. Department of Justice, Airgas, Alternative Investment Group, American Century, America’s Health Insurance Plans, ApexBrasil, Association for Corporate Growth, Bank of America, Bank of New York Mellon, Barclays Services Corporation, BNP Paribas, Capital Research, Citigroup, Deutsche Bank, Fidelity, Franklin Resources, Freddie Mac, Goldman Sachs, Intel, JP Morgan Chase, Microsoft, National Rural Utilities Cooperative Finance Corporation, NMS Group, Oracle, Pension Real Estate Association, Real Estate Roundtable, Reynolds American, Royal Bank of Scotland, Visa, Wells Fargo, Nomura Holdings America, Laurus Funds, Ripplewood Holdings

Fred Mishkin's "Outside Compensation" List Revealed

Federal Reserve Bank of New York, Lexington Partners; Tudor Investment, Brevan Howard, Goldman Sachs, UBS, Bank of Korea; BNP Paribas, Fidelity Investments, Deutsche Bank,, Freeman and Co., Bank America, National Bureau of Economic Research, FDIC, Interamerican Development Bank; 4 hedge funds, BTG Pactual, Gavea Investimentos; Reserve Bank of Australia, Federal Reserve Bank of San Francisco, Einaudi Institute, Bank of Italy; Swiss National Bank; Pension Real Estate Association; Goodwin Proctor, Penn State University, Villanova University, Shroeder’s Investment Management, Premiere, Inc, Muira Global, Bidvest, NRUCF, BTG Asset Management, Futures Industry Association, ACLI, Handelsbanken, National Business Travel Association, Urban Land Institute, Deloitte, CME Group; Barclays Capiital, Treasury Mangement Association, International Monetary Fund; Kairos Investments, Deloitte and Touche, Instituto para el Desarrollo Empreserial de lat Argentina, Handelsbanken, Danske Capital, WIPRO, University of Calgary, Pictet & Cie, Zurich Insurance Company, Central Bank of Chile, and many, many more.


Guest Post: Start Your Own Financial Media Channel with This Template

You've probably noticed the cookie-cutter format of most financial media "news": a few key "buzz words" (fiscal cliff, Bush tax cuts, etc.) are inserted into conventional contexts, and this is passed off as either "reporting" or "commentary" depending on the number of pundits sourced. Correspondent Frank M. kindly passed along a template that is "officially deny its existence" secret within the mainstream media. With this template, you could launch your own financial media channel, ready to compete with the big boys. Heck, you could hire some cheap overseas labor to make a few Skype calls to "the usual suspects," for-hire academics, hedge fund gurus, etc. and actually attribute the fluff to a real person.

Startling Unpublished Keynes Equations Discovered (Friday Afternoon Humor)

A remarkable discovery reveals equations that economists say could end the business cycle - forever. Ian Macallum, spokesman for the Royal & Ancient Historical Society of London, told Routers that the equations were contained in an unpublished manuscript which was found in the attic of an 18th century flat in Soho. "We were skeptical when initially contacted by the current owners” said Macallum. “There is no record of Keynes ever having resided at that address. But we can confirm that the manuscript is indeed an original work of Lord Keynes." The formulas seem to have been derived from the Navier-Stokes equations which describe the motion of fluid substances. “It’s pure Keynesian genius” said former Fed Governor Fred Mishkin. “There is a strong consensus among economists, at least within the Federal Reserve, that liquidity is the answer to the age-old question ‘what is the meaning of life?’” So, it makes perfect sense that someone as brilliant as Keynes would adapt these equations to a framework for fiscal and monetary policy.”

Watch Inside Job - The Movie

We take a few minutes from our readers' busy time, to recommend they watch the movie Inside Job, which is probably one of the best documentaries on the market crash (this is a completely unsolicited and unpaid recommendation). If nothing else (and there is much else) the key redeeming feature of the movie is the complete obliteration of any credibility that former Fed director Fred Mishkin (and rumored Larry Summers replacement) and current Columbia business school dean Glenn Hubbard may have had.

Frontrunning: October 25

  • No surprise here: US foreclosure pipeline slows (FT): "Freddie Mac, one of the two government-owned entities that finance about half all US mortgages, says that homes are taking as long as eight months to work their way through its foreclosure pipeline, two months longer than was typical before the housing crisis began."
  • Key Tax Breaks at Risk as Panel Looks at Cuts (WSJ)
  • Hilsenrath still has that inside touch, and a way with words: "Why the Fed Wants a Tad More Inflation" (WSJ)
  • As predicted a month ago: Bubble fear as rare earth prices soar (FT)
  • Sarkozy Doing `Dirty Work' Means No Scapegoat as Ratings Slump (Bloomberg)
  • Strike paralyses Greek rail network (Earth Times)
  • Waiting Ships Number Up Again In French Oil Port Strike (WSJ)
  • Napoleon Idiot Dynamite: The Fed must adopt an inflation target (Fred Mishkin, h/t Miles)
  • Unsolicited fiscal advice from the unemployed: Now Isn’t the Time to Cut the Deficit (Christina Romer)
  • To fix the economy, let bad banks die (LA Times)

Man Who Listened To Fred Mishkin's Advice, Will Be First To Be Criminally Charged For Great Depression 2

The place where the global crisis, culminating as a result of 30 years of cheap money, began, Iceland, may well be the place which sees the first ever criminal conviction stemming from the Depression v2. Globe and Mail reports that Iceland's former prime minister has been referred to a special court, which could make him the first world leader to be charged in connection with the global financial crisis.

Lunatics At Institute For International Economics Endorse $6 Trillion More In QE, Cite Fred "Iceman" Mishkin For Corroboration

The latest lunacy out of the Institute for International Economics notes that the dollar can and should go to negative territory courtesy of another roughly $6 trillion in Quantitative Easing. Enter Joseph Gagnon, who is obviously daring to boldly go where the Fed Chairman can only dream of going, and is set on ruining whatever is left of America's (and the world's) middle class.

Has The Gold Bubble Burst? Either Way, Geithner Is Now Scroomed

A 4% move in 4 hours. At least with the gold bubble out of the way, stocks are fully apprised of what to anticipate. Somewhere Tim Geithner is congratulating himself for a strong dollar job well done. Of course, this does little to resolve the several trillion of worthless crap on bank balance sheets whose "value" just went in the non-FDIC preferred direction. And thus the Sec Tres is reminded why he is scroomed: there is no way out now - either jobs have to revert to trendline (the BLS would need to, ironically, hire humans over Kool-aid infused monkeys to do the next data analysis), or banks will be soon knocking on Sheila Bair's door, reminding that they were just kidding about that TARP payment. In that sense Napoelon Iceman Dynamite, Fred Mishkin is correct that gold is merely a sideshow.

Frontrunning: November 10

  • SAC said to tell clients a review found no suspicious trading (Bloomberg)
  • John Crudele destroys the fabricated data coming out of the BLS: real unemployment at 22% (Post)
  • The Mishkin galatic stupidity trifecta:
    • After destroying Iceland, finance "guru" Fred Mishkin says asset bubbles are a good thing (FT) - Where does the Fed find these sociopaths?
    • And even more toxic filth out of the Iceland destructor: The Fed is Already Transparent (WSJ)
    • As a reminder, Fred Mishkin, was left the Fed in disgrace in 2008, has credibility boredring on negative infinity (Zero Hedge)
  • Charlie Gasparino on mollusks and purported credibility: Goldman Sachs doing god's work (HuffPo)

Mishkin On Iceland: "Nothing Is F*#&ed Here Dude"

Now that even Le Big Mac has hightailed it out of Reykjavik, the locals, forever deprived of $0.99 cheeseburgers and anything resembling a stable currency (a good advance look at what the U.S. can look forward to, although at least California makes some happy, Prozacked cows now and then), are at least owed some levity (even if it as their expense). And when one looks for matters dealing with jocularity (and/or gross, flagrant incompetence), one really needs to look no further than the Federal Reserve. In this case, former Fed director Fred Mishkin will suffice, who in May 2006 penned a report titled "Financial Stability In Iceland."

An Overview Of The Fed's Intervention In Equity Markets Via The Primary Dealer Credit Facility

Recently, Zero Hedge presented a snapshot analysis of the various securities that made up the triparty repo agreement involving JPM, Lehman and the Fed. We uncovered numerous bankrupt companies' equities that were being pledged as collateral for what ultimately was taxpayer exposure. To our surprise, this discovery is not an exception, and in fact in the days immediately preceding the collapse of Bear Stearns first, and subsequently, Lehman Brothers, the Federal Reserve established and refined a program that permitted banks to pledge virtually any security as collateral, including not just investment grade bonds and higher ranked securities, but also stocks of companies, the riskiest investment possible, and a guaranteed way for taxpayer capital to evaporate in the context of a disintegrating financial system, all with the purpose of bailing out Wall Street's major institutions. On two occasions last year: on March 16, 2008, and subsequently on September 14, 2008, the Federal Reserve first established what is known as the Primary Dealer Credit Facility (PDCF), and subsequently amended it, so that the Fed, in becoming the lender of last resort, would allow any collateral, up to and including stocks, to be funded by the Federal Reserve's credit facility, in order to prevent the $4.5 trillion repo financing system from imploding. By doing so, the Federal Reserve effectively gave a Carte Blanche to primary dealers to purchase any and all equities they so desired, with such purchases immediately being funded by the US taxpayer, via the PDCF. In essence, this was equivalent to the Fed purchasing equities by itself through a Primary Dealer agent.

Readers who have been concerned with the moral hazard provided by the Fed's monetization of Treasury and Mortgage debt, should be doubly concerned by this Fed action which sent three key messages to Wall Street: i) it made sure that Primary Dealers would generate massive profits on risky assets as the Fed would provide the funding to acquire any and all stocks (keep in mind the cost of funding of the PDCF to primary dealers was negligible); ii) it tipped its hand as to the existence and modus operandi of the rumored "plunge protection team," iii) and it made clear that the much maligned, by none other than Chairman Bernanke, concept of "moral hazard" is the one and only systemically relevant doctrine as long as the Fed's Chairman is in control, and not subject to any auditing auspices. The fact that PDs used over $140 billion of taxpayer money within a few weeks of the program's expansion in September to fund what one can assume were exclusively equity purchases, demonstrates that the American financial system got the message.