New Economies/Banking/ Social Lending/SRI.
What is market monetarism? People have asked me for a summary of market monetarist ideas. Or a “model” of some sort. Not every market monetarist agrees with all these ideas, but most agree with most. I’ll start with policy, then cover the more difficult theory aspects: 1. 2. 3. Update: Andy Harless and Lars Christensen pointed out that there’s no logical reason why a market monetarist would have to favor NGDP targeting. Now for the theory part: 4. Put simply, we assume that a big crop of new currency lowers the value of money (i.e. its purchasing power) for the same reason that a big crop of apples lowers the value of an apple. 5. 6. 7. 8.
The interaction of the supply of base money and velocity (or the Cambridge k) determines NGDP. 9. 10. To summarize, we have many similarities to monetarism, but don’t favor a stable money supply rule, nor do we assume relatively stable velocity. PS. Tags: Austerity Plans Are Based on the Wrong Diagnosis of the Wrong Problem -- And May Plunge Europe into Depression. January 4, 2012 | Like this article? Join our email list: Stay up to date with the latest headlines via email. Even if European politicians ‘get their acts together,’ the eurozone crisis will not be solved by a new ‘ Fiscal Compact’ obsessed with austerity, i.e. tight rules for all member states on their spending. The agreement, which is intended to save the single currency, is not a “fiscal” anything, since that word usually refers to government spending. The plan is really an Austerity Compact – an attempt address economic malaise based on upside-down thinking.
And it won’t work. This is exactly the opposite of what should happen. But the main problem with the ‘Austerity/Fiscal Compact’ solution is not just that it won’t work for Keynesian reasons, but that it is based on exactly the wrong diagnosis of the problem. Growth and Speculation are the True Culprits Instead, the real problem has been two-fold: a growth crisis and a speculation crisis. Driving Down Wages Will Hurt, Not Help. Secret Fed Loans Gave Banks Undisclosed $13B. The Federal Reserve and the big banks fought for more than two years to keep details of the largest bailout in U.S. history a secret.
Now, the rest of the world can see what it was missing. The Fed didn’t tell anyone which banks were in trouble so deep they required a combined $1.2 trillion on Dec. 5, 2008, their single neediest day. Bankers didn’t mention that they took tens of billions of dollars in emergency loans at the same time they were assuring investors their firms were healthy. And no one calculated until now that banks reaped an estimated $13 billion of income by taking advantage of the Fed’s below-market rates, Bloomberg Markets magazine reports in its January issue.
Saved by the bailout, bankers lobbied against government regulations, a job made easier by the Fed, which never disclosed the details of the rescue to lawmakers even as Congress doled out more money and debated new rules aimed at preventing the next collapse. ‘Change Their Votes’ The Fed, headed by Chairman Ben S. The Absolute Moron’s Guide to the Euro Debt Crisis. Every day seems to bring another forecast of impending economic doom in Europe. Wild stock market swings, rioting in the streets, "dollar liquidity swap arrangements," leveraging the European Financial Stability Mechanism" — what are these people, with their foreign tongues and funny names, talking about? We’ve put together an FAQ (in English, natch) for those who are not just confused, but hopelessly mired in ignorance. So Europe, that’s some kind of soccer league, right?
Europe is a continent. Not ringing any bells. Oh, Europe. Which nations are we talking about? You forgot England, dummy! That can’t be right. Collapse? I still don’t know what the problem is.The problem is the common currency between countries. My family hosted a foreign exchange student once. So the euro sounds great.For a while, it was. Because they used the same currency, right? Devious! Swine flu! So they can all declare bankruptcy. Why should I care about this? It’s a Catch-22.Not at all. What happens next? Okay. Loose lips Twitter at Goldman Sachs - National entrepreneur. Goldman Sachs, the Wall Street Bank and Federal Reserve partner, became a household name on Main Street in the fall of 2008 with its participation in the global financial meltdown.
And while the firm had been largely categorized a behemoth monolith, GSElevator on Twitter is giving the global bank a bit more color with tweeted glimpses of corporate culture via conversations of workers who don't take the stairs. The account, which has been up and running since August, is reportedly run by an anonymous middle or above-level banker who has " long been cynical of the industry and the people that build their entire sense of self around it," according to a New York Times story. By looks of tweets on the account, GSElevator's cynicism is well founded as hubris, misogyny, and middle- and working-class contempt are common themes.
Analyst #1: She lives in Harlem. Analyst #2: What the f*ck. A#1 (on protesters): I was going to make a sign... Goldman Sachs: Win, cheat, or quit. George carlin Bankers. Ed Show: SuperRich Income Increased over 240% in Last 30 years, Workers 0% Is the world too big to fail? The democracy uprising in the Arab world has been a spectacular display of courage, dedication, and commitment by popular forces - coinciding, fortuitously, with a remarkable uprising of tens of thousands in support of working people and democracy in Madison, Wisconsin, and other US cities.
If the trajectories of revolt in Cairo and Madison intersected, however, they were headed in opposite directions: in Cairo toward gaining elementary rights denied by the dictatorship, in Madison towards defending rights that had been won in long and hard struggles and are now under severe attack. Each is a microcosm of tendencies in global society, following varied courses. Despite all the changes since, there is every reason to suppose that today's policy-makers basically adhere to the judgment of President Franklin Delano Roosevelt's influential advisor A.A. Berle that control of the incomparable energy reserves of the Middle East would yield "substantial control of the world. " 'Grand Area' Depository Trust Company (DTC) Definition. What is Depository Trust Company. Depository Trust & Clearing Corporation. In 2011, DTCC settled the vast majority of securities transactions in the United States and close to $1.7 quadrillion in value worldwide.
DTCC has operating facilities in the New York metropolitan area, and at multiple locations in and outside the U.S. History Established in 1973, The Depository Trust Company (DTC) was created to alleviate the rising volumes of paperwork and the lack of security that developed after rapid growth in the volume of transactions in the U.S. securities industry in the late 1960s. Before DTC and NSCC were formed, brokers physically exchanged certificates, employing hundreds of messengers to carry certificates and checks. The mechanisms brokers used to transfer securities and keep records relied heavily on pen and paper. The exchange of physical stock certificates was difficult, inefficient, and increasingly expensive. Two methods were used to solve the crisis: One problem was state laws requiring brokers to deliver certificates to investors. Sharing/Gift Economy. The global economy's corporate crime wave.
The world is drowning in corporate fraud, and the problems are probably greatest in rich countries – those with supposedly "good governance". Poor-country governments probably accept more bribes and commit more offenses, but it is rich countries that host the global companies that carry out the largest offenses. Money talks, and it is corrupting politics and markets all over the world. Hardly a day passes without a new story of malfeasance.
Every Wall Street firm has paid significant fines during the past decade for phony accounting, insider trading, securities fraud, Ponzi schemes, or outright embezzlement by CEOs. A massive insider-trading ring is currently on trial in New York, and has implicated some leading financial-industry figures. There is, however, scant accountability. Corruption pays in American politics as well. The FBI's investigation forced Scott out of his job. But why stop at governors or presidential advisers? Jeffrey D. Federal Reserve Banks.