Category Archives: Government

government laws and regulatory news

The Great “American” Divide

by Lance Roberts, Streetalk Live I have often spoken of the disconnect between Wall Street and Main Street. While asset prices are inflated by continued interventions of monetary policy from the Federal Reserve, boosting Wall Street profits and widening the … Continue reading

Posted in Employment, Federal Reserve, GDP, Home Sales and Home Prices, Personal Income and Consumption, Prices - PPI, CPI and More, Retail & Business Sales, Trade Data, stock markets | Tagged , , , , , , , , , , , | 6 Comments

New Mortgage Modification Program Can’t Stop Further Housing Collapse

Written by Keith Jurow, Capital Preservation Real Estate Report Here We Go Again On March 27, 2013, the Federal Housing Finance Administration (FHFA) announced the introduction of still another mortgage modification program. Entitled the Streamlined Modification Program, it was intended … Continue reading

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Escaping Liquidity Traps: Lessons from the UK’s 1930s Escape

by Nicholas Crafts This article was originally published by Voxeu.org on May 12, 2013 The UK escaped a liquidity trap in the 1930s and enjoyed a strong economic recovery. This column argues that what drove this recovery was ‘unconventional’ monetary … Continue reading

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Terminal Velocity (9) – “Helicopter Take-off”

Written by Adam Whitehead, KeySignals.com From Terminal Velocity (3) – “The Pyramid Scheme”[i]: Reading between the lines, it is clear that the Fed intends to maintain a large balance sheet of assets for some time; even after interest rates have … Continue reading

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Japan: Exporting Deflation

by John Mauldin, Thoughts from the Frontline The evils of this deluge of paper money are not to be removed until our citizens are generally and radically instructed in their cause and consequences, and silence by their authority the interested … Continue reading

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Uncertainty, Liquidity Hoarding, and Financial Crises

Analysis from Liberty Street Economics Tanju Yorulmazer, Federal Reserve Bank of New York One of the most interesting phenomena marking the recent financial crisis was the disruptions in the interbank market, where banks borrow and lend reserves to each other. … Continue reading

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Housing Smoke and Mirrors (5) – “Zombie Fed”

Written by Adam Whitehead, KeySignals.com In Housing Smoke and Mirrors (4), it was suggested that the bad eggs in the 2005 and 2009 Mortgage Vintages were hatching; and creating a growing systemic threat. Click to enlarge The Federal Reserve and … Continue reading

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The Liquidity Trap In the IS/MY Model (“Sitges Equation”)

by Dirk Ehnts, Econoblog101 I have recently built a small model which builds on the “Sitges” balance of payments identity. “Sitges” – originally a little town close to Barcelona – helps me to remember that the change in debt of … Continue reading

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Payrolls Gain But QE Has No Impact On Growth Rate

by Lee Adler, Wall Street Examiner The BLS today reported a seasonally adjusted (SA) gain of 165,000 in April nonfarm payrolls, beating the consensus estimates of 140,000 to 155,000 from surveys of economists by mainstream media organizations. Surprise, surprise (not) … Continue reading

Posted in Employment, Federal Reserve, GDP, Personal Income and Consumption, Taxation, macroeconomics | Tagged , , , , , , , , , | Leave a comment

Fed Mortgage Subsidy Drives Buying Panic In Existing Homes To Bubble Levels

by Lee Adler, Wall Street Examiner The NAR Pending Home Sales data for March is a measure of current sales as of the date of the contract. It’s the closest thing we have to a real time measure of sales … Continue reading

Posted in Federal Reserve, Home Sales and Home Prices, mortgages | Tagged , , , , , , , , , | 1 Comment

Public Debt and Economic Growth, One More Time

by Ugo Panizza and Andrea F Presbitero This post was originally published by Voxeu.org The very public Rogoff-Reinhart kerfuffle has focused on what is not true. This column reviews the evidence on what is true. It suggests that the debt-growth … Continue reading

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Everyone’s Missing the Bigger Picture in the Reinhart-Rogoff Debate

by Washington’s Blog, Washington’s Blog The “Excel Spreadsheet Error” in Context You’ve heard that an incredibly influential economic paper by Reinhart and Rogoff (RR) – widely used to justify austerity – has been “busted” for “excel spreadsheet errors” and other … Continue reading

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Terminal Velocity (6) Update – “Flying Blind, On Fumes, With No Pilot”

Written by Adam Whitehead, KeySignals.com In Terminal Velocity (4)[i], the possibility and conditions precedent for the “Helicopter” to land at Jackson Hole were discussed. The specific landing conditions were identified in Terminal Velocity (5). These conditions were observed as a … Continue reading

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Which Comes First: Good Governance or Development?

by Edvin Arnby Machata This article was originally published by Institute for Advanced Development Studies with spelling of the author’s name corrected in this update. The international development community has for almost two decades focused on improving governance as a … Continue reading

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Does Unemployment Claims Data Indicate There Actually is Some Trickle Down?

Big Improvement in Unemployment Claims Suggests Fed Rigging May Be Trickling Out by Lee Adler, Wall Street Examiner The trend toward fewer initial unemployment claims showed signs of accelerating this week. If that were to continue it would mean that … Continue reading

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The Debt-Deposit Duality

The Debt-Deposit Duality. How Much Is the Federal Debt? $12 Trillion? $10 Trillion? $0? by Rodger Malcolm Mitchell, www.nofica.com Quantum mechanics is counter-intuitive, partly because of the wave-particle duality, which says that something can be both a wave and a … Continue reading

Posted in Federal Reserve, US Treasury, money | Tagged , , , , , | 5 Comments

Making The Case Against Austerity

by Stephanie Kelton This article was originally published in New Economic Perspectives Neil Irwin at Wonkblog has a new post up:  The Deficit is Falling Fast. Can Washington Accept Victory? He quotes John Makin of the American Enterprise Institute, who says, … Continue reading

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The Great Debate©: How is U.S. Governance Broken?

Is The U.S. Government Structure Governable? Written by Elliott Morss, Morss Global Finance and Richard P. Rust Editor’s note: Two days ago Elliott Morss published an Op Ed on flaws in U.S. governance represented by the failure to even debate … Continue reading

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Is the Federal Reserve Breeding the Next Financial Crisis?

by Ambrogio Cesa-Bianchi and Alessandro Rebucci This article was originally published in Voxeu.org Many economists think that the US Federal Reserve’s loose monetary stance in the 2000′s fueled the US housing bubble. Is the Fed thus responsible for the Global … Continue reading

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Reinhart. Rogoff. Wrong.

by Dirk Ehnts, Econoblog101 This is a major scandal of economists finding a result which does not hold under closer scrutiny. Back in 2010, which is just the year that European austerity policies were put into place, the authors published … Continue reading

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