Saturday, March 24, 2018

Steve Roth — MMT and the Wealth of Nations, Revisited

I just had occasion, in replying to a correspondent, to reiterate much of the thinking in my recent MMT Conference presentation. I thought it might be a useful and apprehensible form for some readers, so I’m reproducing it here.
I’ve also explained this at somewhat painful length here.
Asymptosis
MMT and the Wealth of Nations, Revisited
Steve Roth

2 comments:

Matt Franko said...

“Market runups (cap gains) add assets to PS balance sheets. Like gov def spending, no new PS liabilities added, so +PS NW.“

Well the recent tax law changes SUBTRACTED approx 40b from assets of Depository institutions so -PS NW ...

Matt Franko said...

And now they have 2018 stress test results due by April 5th:

https://www.federalreserve.gov/newsevents/pressreleases/bcreg20180201a.htm



“Firms participating in CCAR are required to submit their capital plans and stress testing results to the Federal Reserve on or before April 5, 2018.“

So they force an unplanned $40b markdown of regulatory capital 90 days before the stress tests are still due with no accommodation or relief due to this drastic policy change...

What a bunch of f-ing incompetent unqualified douche bag morons... we’re lucky the market is only down as much as it is from January highs...