QE3 and the Baby Boomers

At the beginning of yesterday’s QE3 press conference, Fed Chairman Ben Bernanke referred to the plight of savers. Similarly, during an August “Conversation With the Chairman,” Dr. Be…

The Fed Debate

10 years ago, the future Federal Reserve Chairman Ben Bernanke said to Nobel laureate Milton Friedman, “Regarding the Great Depression. You’re right, we did it. We’re very sorry. But…

Too Big To Fail

Imagine for a moment that you are the CEO of a large bank. Offered the opportunity to participate in a risky business deal, you say, “Yes.” If the venture succeeds, you benefit. If it fail…

A QE2 Eulogy

Although QE2 ended yesterday, eulogies for the Fed’s $600 billion bond buying program did not focus on the qualities of the deceased and why we will miss her. Yes, some did believe that thi…

Comparing Central Banks

Perhaps we can divide the world between inflation fighters and recession fighters. Right now, most of the inflation fighters are in the developing world. In Brazil, Russia, India and China (the BRICs)…

Savers or Borrowers?

In 1987, a $100 savings account would have earned close to $9 in interest. In 2005, $3.75 or so. Now, maybe 47 cents? The WSJ, had a good article describing how savers are suffering. The retirees who …

A Different Kind of Currency Crisis

Our story begins with the United States announcing that it would be issuing a state-of-the-art new $100 bill. Designed to thwart counterfeiters, the new bill has 3-D interactive features. Move the bil…

How the Fed Helped Harley

Have you ever thought about how, every month or every week, businesses have money for paychecks? One answer is commercial paper. It is amazing that commercial paper is central to so much economic acti…

Virginia and Germany

“Where…is the justice of compelling a State which has taxed her citizens for the sinking of her debt, to pay…the debts of other states, which have made no exertions whatever?” …

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