Articles By: Edward Harrison
Get Out of Jail Free, European Edition
I was thinking about that last post I wrote on the euro zone and regulatory forbearance. They say a picture is worth a thousand words. So here’s a picture that captures my thinking pretty well
The European Sovereign Debt Crisis, the US Savings and Loan Crisis and Regulatory Forbearance
This is me thinking out loud about how regulatory forbearance in the S&L crisis mirrors today’s policy path
News Links 01/31/2012
NIALL FERGUSON: Okay, I Admit It—Paul Krugman Was Right Professor Ferguson’s take on the United States has changed notably over the past year. He still thinks the U.S. budget deficit is unsustainable and that our entitlement programs will ultimately have to be cut. But he has changed his mind about the U.S.’s ability to sustain
News Links 01/30/2012
The Best Alternative Financial Blogs – CNBC To assemble our list, we polled our friends, our sources, and our followers on Twitter. We excluded many of the sites we really enjoy because they are associated with major media organizations. tags: blogs finance Posted from Diigo. The rest of my favorite links are here
News Links 01/28/2012
Greece plans orderly exit of the Eurozone – National International Trade | Examiner.com Greece plans an orderly exit out of the Eurozone according to two sources close to Mr. Papademos, Greek Prime Minister, who spoke on condition of anonymity earlier today. tags: greece currency euro Charles Murray on the New American Divide – WSJ.com If
Chart of the Day: Permanent Zero and Personal Interest Income
If you are a retiree, you’re not happy these days. Five years ago, you were getting a decent return on your fixed income investments. But since then, the Fed has trashed the fixed income market by reducing interest rates to zero percent for “an extended period”. The thinking is that this will get people to take on more credit. But the reality is that a lot of people are stuffed to the gills with existing credit and are not creditworthy. The Fed is pushing on a string
[PREMIUM] The Ultimate QE is the Fed’s Coming Purchase of Real Assets
I would bet on near-systemic collapse before the Fed starts either asset purchases or Congress resorts to fiscal activism. But eventually, the Fed is going to purchase more than just treasuries. They will purchase a lot of financial assets and probably some real assets as well
Stephen Roach on US, the Fed, China, and Europe
Stephen Roach says the Fed is going all in in support of QE and I agree. But what else are they going to do? Look at Europe, for example. The ECB there has a hydra-headed problem with sovereigns and banks on the brink of insolvency and they too have expanded the balance sheet like mad. China faces many of the same challenges with excess credit growth and fragile financial firms in the face of asset price deflation
I repeat: The Fed’s Permanent Zero rate policy is toxic
Permanent zero can work over the medium-term but the economy is dependent on employment growth and monetary policy doesn’t drive that
[PREMIUM] More on the Fed – Obama stimulus plan
My last weekly said the hand-in-hand Fed activism and fiscal activism via Obama’s mortgage proposal is bullish. Let me add a bit of colour here
News Links: Monetary Realism and why the Fed won’t tell the truth
MONETARY REALISM | PRAGMATIC CAPITALISM I feel that the core operational aspects of MMT are among the most important ideas in the world and my goal here has always been to help promote those ideas. Because I believe in those ideas I will not stop promoting them. So I’ve been working with Michael Sankowski, Carlos