The Fed

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Mark Thornton

Joseph Salerno's paper "A Modest Proposal for Reining in the Bernanke Fed" is now in the Top 10 in downloads on the Social Science Research Network (SSRN) in the category of "Response to Financial Crisis." (no kidding!) SSRN is the primary depository of working paper in economics and the social sciences. You can download Joe's paper here for free.

 

Mark Thornton

Not only are stock markets near all time highs, the amount of margin debt is also at all time highs. Margin debt is money borrowed to leverage the purchasing power of portfolios.

Mark Thornton

Why is it that only former Fed officials are willing to say the truth about the economy and monetary policy. I know they don't know the whole truth and they are blinded by power, but why do they always wait till they are "former" to tell the truth.

Shawn Ritenour
Thanks to the central bank, those who worked hard and "played by the rules" all their lives now face an uncertain future as inflation chips away at their savings and threatens their financial stability.
Mark Thornton

"In other words, you cannot accurately forecast a recession or financial panic by looking at either the announcement or the completion of the world’s tallest building"

 

So The Economist apparently does not think too "highly" of my skyscraper theory

Mark Thornton

Europeans have long been fearful of the prospects of price deflation, but now that it has arrived they have embraced it.

Mark Thornton

The Fed has been messing with interest rates for a century and suddenly they have forgotten how to raise interest rates?

Mark Thornton
This paper examines the communications of officials from the Federal Reserve during 2007, the year between the end of the housing bubble and the beginning of the financial crisis.