From Washington's Blog: More Evidence that Banks Create Credit Out of Thin Air I recently provided evidence that banks create credit out of thin air. I've just found two more pieces of evidence: (1) William C. Dudley, President and Chief Executive Officer of the Federal Reserve Bank of New York, said in a speech last … Continue reading Banks Create Credit Out of Thin Air
Day: March 18, 2010
Loans Create Reserves, not Vice Versa
From Washington's Blog - 7 Questions About Public Banking This is an open letter to the economics, finance and banking communities. I don't have any dog in the fight, other than to figure out and then publicize what is best for the greatest number of people. People I greatly respect advocate for federal-level public banking, … Continue reading Loans Create Reserves, not Vice Versa
Class Warfare: The Rich are Winning
From Washington's Blog: The American Dream Has Moved Abroad The American dream has always been that even those with humble roots can end up wealthy. The American dream is what has motivated generations of Americans - natives and immigrants alike - to work hard and play by the rules. And as Michael Moore wrote in … Continue reading Class Warfare: The Rich are Winning
Anna Schwartz on Liquidity vs. Solvency Crises
From Wall Street Journal, Oct 18, 2008: By BRIAN M. CARNEY New York On Aug. 9, 2007, central banks around the world first intervened to stanch what has become a massive credit crunch. Since then, the Federal Reserve and the Treasury have taken a series of increasingly drastic emergency actions to get lending flowing again. … Continue reading Anna Schwartz on Liquidity vs. Solvency Crises
Banking Welfare Queens – part I
The banking and finance industry is broken. We need overhaul and need it badly. Exhibit #1 from Yves Smith at Naked Capitalism: Indefensible Men Since inequalities of privilege are greater than could possibly be defended rationally, the intelligence of privileged groups is usually applied to the task of inventing specious proofs for the theory that … Continue reading Banking Welfare Queens – part I
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