Posts Tagged ‘kick the can down the road’
Posted by Larry Doyle on March 21st, 2012 8:36 AM |
More and more we see central bankers around the world — but especially here at home and within the EU — engaged in financial repression as THE means to solve our economic woes.
What is financial repression?
A term that describes measures by which governments channel funds to themselves as a form of debt reduction. This concept was introduced in 1973 by Stanford economists Edward S. Shaw and Ronald I. McKinnon. Financial repression can include such measures as directed lending to the government, caps on interest rates, regulation of capital movement between countries and a tighter association between government and banks.
What are the challenges faced by investors in an era of financial repression? (more…)
Tags: bank bondholders, capital controls, central bank balance sheet expansion, chances of hyperinflation, chances of long term inflation, coercive exchanges, consequences of financial repression, definition of financial repression, feeling repressed, financial repression, financial transaction tax, forms of financial repression, Heading for the Great Repression?, how does financial repression work, interest rates, kick the can down the road, kicking the can, long term impact of financial repression, market distortions, market manipulations, naked short selling, nationalization of financial institutions, prior financial repression, Stanford economist Ronald I. McKinnon, Stanford economists Edward S. Shaw, types of financial repression, Uncle Sam economy, what is financial repression, why are interest rates so low
Posted in fiscal policy, General, monetary policy | 2 Comments »
Posted by Larry Doyle on May 31st, 2011 7:43 AM |
Here we go again.
Who is going to pay for the massive embedded losses in the European sovereign credits of Greece, Portugal, and elsewhere? Will it be the bondholders, primarily the European banks, or will it be the European citizens and taxpayers?
While this European “can was kicked down the road” over the last few years, the market pressure is increasing on Greece primarily but other European sovereigns as well. What might happen in this ultimate game of “financial chicken”? Who and what will break first?
Well the “king of Wall Street”, Larry Fink, just stated on a Bloomberg interview that prior to any restructuring of sovereign credits occurring, the European banking system as a whole needs to be recapitalized and restructured. Fink actually stated that the European banks need what we here in America know as TARP (Troubled Asset Recovery Program). The TARP was in actuality nothing more than a massive bailout of the banks by the government. (more…)
Tags: abuse of capitalism, Blackrock Larry Fink, Christine Lagarde, EU, Europe Problems Go Way Beyond Greece, European bank bailout, European banks, Federal Reserve bailout of European banks, how much aid does Greece need, IMF, kick the can down the road, Larry Fink, Larry Fink interview on Bloomberg May 31 2011, market pressure on Greece Ireland Portugal, recapitalizing European banks, restructuring European banks, spreading European losses, will European banks be bailed out, will we have a European TARP
Posted in General | 4 Comments »
Posted by Larry Doyle on June 14th, 2010 11:45 AM |
While the United States has very clearly chosen the Japanese path of ‘kicking the can down the road’ to deal with our current economic crisis, the Republic of Ireland has chosen the Swedish approach of ‘take your medicine as quickly as possible.’ Economists and analysts will debate the merits and shortcomings of each style for a long time. That said, is there anything we can learn currently from our friends in Ireland? (more…)
Tags: Anglo Irish bank, Celtic tiger, collapse of Lehman Brothers, FINRA, Ireland's Financial Lessons, Irish catholic guilt complex, Irish Nationwide, Irish transparency and integrity, Japanese style vs Swedish style, kick the can down the road, Klaus Regling and Max Watson, Patrick Honohan, Republic of Ireland, SEC, take your medicine as quickly as possible, the collapse of the Celtic tiger, thousand year storm, Wall Street-Washington incest, who is Patrick Honohan
Posted in General | No Comments »
Posted by Larry Doyle on March 26th, 2010 8:24 AM |
My blood is boiling. Why?
The assault on the principles of free market capitalism is escalating with news that banks are poised to start reducing principal balances on certain mortgages.
I empathize with those who are strapped, but I have never felt more strongly on a topic than this principal reduction. Despite any and all bulls*%# put forth by those in Washington, the principal reduction program is an enormous escalation of the violation of moral hazard which our country sadly continues to embrace. I have no doubt it will expedite the development of a socialized housing finance system.
Do not think for a second that banks will take the hit on these principal reductions. Who will take the hit? Me and you. Those who have worked hard, saved, played by the rules, and taught our children to do the same. (more…)
Tags: Federal Housing Administration, FHA, herb allison, Housing Crisis, housing finance, how to get principal reduction on mortgage ion, kick the can down the road, Moral Hazard, mortgage principal, Mortgages, mortgages principal reduced, Neil Barofsky, New Plan to Cut Some Mortgage Balances, Obama principal reduction program, our future, principal reduction, principal reduction of mortgages, principal reduction program, socialized housing finance, TARP, violation of moral hazards
Posted in General, Moral Hazard, Mortgage Cram-Down, Mortgage Crisis, Mortgages | 13 Comments »
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