Money and Banks

Displaying 1 - 10 of 2397

Is the US Banking Crisis Over? It Has Barely Begun

Booms and BustsThe FedMoney and BanksU.S. Economy

Blog17 min ago

Fractional reserve banking by itself undermines both the banking system and the economy. No action by the Federal Reserve can eliminate the threats.

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As Interest Rates Rise, the Era of "Deficits Don't Matter" Is Over

Money and Banks

Blog05/27/2023

The world is changing, and in the coming five years we'll see how accelerating debt, declining demand for dollars, and rising price inflation will show how deficits do matter, after all. 

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Three Lies They're Telling You about the Debt Ceiling

Money and Banks

Blog05/23/2023

One: the Republicans want big cuts and austerity. Two: The US has never defaulted before. Three: Default is the end of the world. 

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Crowding Out: The Fed May Be Killing the Private Sector to Save the Government

Money and Banks

Blog05/20/2023

A "soft landing" is impossible unless the government cuts both taxes and government spending at the same time interest rates are rising. This won't happen, so get ready for a hard landing. 

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The Five Stages of Bank Failure Grief

Cronyism and CorporatismThe FedMoney and BanksU.S. Economy

Blog05/20/2023

We are familiar with the five stages of grief. However, it is not a stretch to apply those stages to what is happening to the banking system. Right now, we are in the second stage: anger.

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Banks Are Lending Less Money, and That's a Formula for Recession

Money and Banks

Blog05/18/2023

A new Fed survey shows that banks are cutting back on lending big time. Over the past thirty-five years, this almost always predicts recession. Our economy can't survive without endless new infusions of easy money. 

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Price Inflation Growth Slowed Slightly in April. Now Wall Street Will Demand More Easy Money.

Money and Banks

Blog05/12/2023

April was yet another month of declining real wages, and was the twenty-fifth month in a row during which growth in average hourly earnings failed to keep up with price inflation.

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Finance Discovers Sting: "How Fragile We Are"

Financial MarketsMoney and BanksU.S. EconomyInterventionism

Blog05/11/2023

Despite the soothing hot air from the White House and Fed officials, the financial system is becoming increasingly fragile and unstable. Maybe all of that intervention the past decade was not wise.

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The Fed Is Overindebted, Isn’t It?

Economic PolicyThe FedMoney and BanksStrategyU.S. Economy

Blog05/08/2023

By any conventional measures of finance, the Federal Reserve has negative equity. In the long run, cooking the books only puts off the day of reckoning.

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A Credit Crunch Is Inevitable

Money and Banks

Blog05/06/2023

The combination of higher rates and declining optimism about the economy, plus slumps in equity, private investments, and bond valuations, is going to inevitably lead to a massive crunch in access to credit and financing.

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