Home » Posts tagged 'excess reserves'
Tag Archives: excess reserves
St Louis Fed Discloses More Free Money: A Carry Trade in Liquidity
St Louis Fed Discloses More Free Money: A Carry Trade in Liquidity Not only do banks earn free money on excess reserves, they can borrow money and make guaranteed free money on that. The Federal Reserve Bank of St. Louis discusses the Carry Trade in Liquidity. The IOER [interest on excess reserves] has been the […]
The Federal Reserve Is Destroying America
The Federal Reserve Is Destroying America And wait until you hear what they’re getting away with now Perhaps I should start with a disclaimer of sorts. Yes, I realize that the people working at the Federal Reserve, as well as the other central banks around the world, are just people. Like the rest of us, […]
Shuffling The Deckchairs On The USS Perpetual Growth
Shuffling The Deckchairs On The USS Perpetual Growth The USS Perpetual Growth was picking up speed, steaming over calm seas despite a growing chorus of capital market Cassandras fearing trouble under the surface and further out at sea. “Full speed ahead” Skipper Yellen barked to her economates, unperturbed by ominous radar images or the uselessness of econometric […]
Deutsche Bank: Negative Rates Confirm The Failure Of Globalization
Deutsche Bank: Negative Rates Confirm The Failure Of Globalization Negative interest rates may or may not be a thing of the past (many thought that the ECB had learned its lesson, and then Vitor Constancio wrote a blog post showing that the ECB hasn’t learned a damn thing), but the confusion about their significance remains. […]
The Global Run On Physical Cash Has Begun: Why It Pays To Panic First
The Global Run On Physical Cash Has Begun: Why It Pays To Panic First Back in August 2012, when negative interest rates were still merely viewed as sheer monetary lunacy instead of pervasive global monetary reality that has pushed over $6 trillion in global bonds into negative yield territory, the NY Fed mused hypothetically about […]
HSBC Looks At “Life Below Zero,” Says “Helicopter Money” May Be The Only Savior
HSBC Looks At “Life Below Zero,” Says “Helicopter Money” May Be The Only Savior In many ways, 2016 has been the year that the world woke up to how far down Krugman’s rabbit hole (trademark) DM central bankers have plunged in a largely futile effort to resuscitate global growth. For whatever reason, Haruhiko Kuroda’s move […]
Negative Interest Rates Show Desperation of Central Banks
Negative Interest Rates Show Desperation of Central Banks Image: MarketWatch Japan has joined the EU, Denmark, Switzerland and Sweden in imposing negative interest rates. Indeed, more than a fifth of the world’s GDP is now covered by a central bank with negative interest rates. The Wall Street Journal notes: TOKYO—Japan’s central bank stunned the markets Friday by setting the […]
“Pandora’s Box Is Open”: Why Japan May Have Started A ‘Silent Bank Run’
“Pandora’s Box Is Open”: Why Japan May Have Started A ‘Silent Bank Run’ As extensively discussed yesterday in the aftermath of the BOJ’s stunning decision to cut rates to negative for the first time in history (a decision which it appears was taken due to Davos peer pressure, a desire to prop up stock markets and to […]
“Fed Policy Is Toxic,” Michael Burry Warns “The Little Guy Will Pay” For The Next Crisis
“Fed Policy Is Toxic,” Michael Burry Warns “The Little Guy Will Pay” For The Next Crisis We are sure, just as many of the so-called “smartest men in the room” ignored him last time, so every status-quo-maintaining, asset-gathering, commission-taker will be quick to dissonantly shrug off Michael Burry’s (the economic soothsayer from Michael Lewis’ book […]
