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  • Banks & Interest

    • Interest Rates and the Economy
      Interest rates have a big influence on stock markets because of three factors.
    • Central Banks
      Central banks and interest rates: There is an intrinsic interest rate in any market that matches demand for credit with savings.
    • How Banks Create Money
      How Banks Create Money out of Thin Air: Most money in the economy is held in the form of deposits with banks rather than in the form ...
    • Future Banking Panics
      To protect ourselves from future banking panics we need to understand the underlying causes. Panics are normally precipitated by an insolvency crisis, which then escalates into a liquidity crisis as depositors rush to withdraw their funds.
    • The Fed's Failed Monetary Policy
      Ben Bernanke and I have little in common, but we share the view that any form of recovery is dependent on confidence. Where we differ is in how to restore confidence.
    • Big Picture 2011
      An excellent CNBC interview with Jeremy Grantham where he explains the game the Fed is playing: over-pricing bonds so that investors are forced back into stocks, even when dangerously over-valued.
    • Wright's Model
      Negative yield curves have proved to be reliable predictors of economic recession over the past 50 years. Research by Jonathan Wright, a research economist at the Federal Reserve, questioned whether this relationship still held. But his questions were answered by the GFC in 2007/2008.





 
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