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Foot, That 29T is a summation of a series of much smaller xactions... iow they did 29 weeks of 1T one week xactions.. so if one were to add those up then you get 29T...
Hyperbole from Wray should never have made it out of Levy it probably violates GAAP as far as financial analysis...
I don't understand. 29 is 29, right? Whether it's 29 in one lump or 29 separate $1 trillion injections or 58 $0.5 trillion injections or whatever. The sum total is still 29.
Or are you saying that it was the *same* $1 trillion recycled over and over again. So the sum total is in fact $1 trillion.
This is a crucially important point. Is it $29 trillion or $1 trillion recycled 29 times?
A cb addresser liquidity, not solvency. It is not supposed to provide liquidity to insolvent entities to keep them afloat (even if they are "TBTF"). The fact that liquidity provision was so large and lasted for so long suggests that the Fed was supporting the big institutions "because they were too big to fail" and the people running them were "to big to jail."
It was cronyism masking corruption and in some cases criminal behavior in the form of control fraud, as Bill Black was documenting at the time.
To Wray here, if you borrowed $250k for a mortgage at 9% 10 years ago, and since then, rates have dropped so you have refinanced 3 times over the years as rates fell, then (to Wray) you have borrowed 1M dollars...
The Feds balance sheet has never exceeded 4T so how do you get to 29T I dont know...
They were doing short term operations I forget the terms but they were like 1-week, 30 days, 6 mo., etc they had various terms of the different liquidity programs...
so if a bank came in and posted $100B of USTs for a week then the next week they came in again and posted $95B for the next week, to Wray, they borrowed $195B... while the max amount at any one time was 100...
Again, hyperbole: "exaggeration for effect".... should be no place in the academe for it... this is why they never get anywhere... more interested in hyperbole than empiricism...
7 comments:
Mike you've always said you were typically early.... ;)
A premature anti-fascist!
Have you posted this on your blog Mike ?
http://www.levyinstitute.org/pubs/op_23.pdf
$23 trillion to bail out the financial system with no inflation insight.
That will sort out the chumps who believe taxes fund goverment spending.
Foot,
That 29T is a summation of a series of much smaller xactions... iow they did 29 weeks of 1T one week xactions.. so if one were to add those up then you get 29T...
Hyperbole from Wray should never have made it out of Levy it probably violates GAAP as far as financial analysis...
Matt,
I don't understand. 29 is 29, right? Whether it's 29 in one lump or 29 separate $1 trillion injections or 58 $0.5 trillion injections or whatever. The sum total is still 29.
Or are you saying that it was the *same* $1 trillion recycled over and over again. So the sum total is in fact $1 trillion.
This is a crucially important point. Is it $29 trillion or $1 trillion recycled 29 times?
Rollovers.
A cb addresser liquidity, not solvency. It is not supposed to provide liquidity to insolvent entities to keep them afloat (even if they are "TBTF"). The fact that liquidity provision was so large and lasted for so long suggests that the Fed was supporting the big institutions "because they were too big to fail" and the people running them were "to big to jail."
It was cronyism masking corruption and in some cases criminal behavior in the form of control fraud, as Bill Black was documenting at the time.
John,
To Wray here, if you borrowed $250k for a mortgage at 9% 10 years ago, and since then, rates have dropped so you have refinanced 3 times over the years as rates fell, then (to Wray) you have borrowed 1M dollars...
The Feds balance sheet has never exceeded 4T so how do you get to 29T I dont know...
They were doing short term operations I forget the terms but they were like 1-week, 30 days, 6 mo., etc they had various terms of the different liquidity programs...
so if a bank came in and posted $100B of USTs for a week then the next week they came in again and posted $95B for the next week, to Wray, they borrowed $195B... while the max amount at any one time was 100...
Again, hyperbole: "exaggeration for effect".... should be no place in the academe for it... this is why they never get anywhere... more interested in hyperbole than empiricism...
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