Yearly Archives: 2013

Why Maiden Lane?

"The Fed mobilized 13.3’s lending powers so as to justify purchases by creating five separate Delaware limited liability companies: Maiden Lane LLCs I, II, and III, Commercial Paper Funding Facility LLC (CPFF), and Term Auction Lending Facility LLC (TALF). It lent to these corporations under the authority of Section 13.3. These LLCs proceeded to use these funds to purchase assets not specifically authorized by the Federal Reserve Act. In short, the Federal Reserve attempted to get around [legal] limitations concerning asset purchases by lending to the five recently created LLCs it controlled, and ordering these LLCs to purchase whatever assets it deemed necessary." Continue reading →

Continue ReadingWhy Maiden Lane?

Wall Street: The Next Fed Chief Should Keep the Presses Running

"'Monetary policy has little scope to stimulate the economy,' Summers suggested in September 2008, 'given how low interest rates already are and the problems in the financial system.' Since then, the Fed has bought $2.3 trillion in Treasury and mortgage bonds. It also increased the money supply to unprecedented levels. In contrast, the other front-runner, Federal Reserve vice chair Janet Yellen, said back in March she would not taper anytime soon. CNBC’s poll of Wall Street analysts indicated they believed Yellen would better manage a financial crisis. Translation: She is more likely to keep the presses hot." Continue reading →

Continue ReadingWall Street: The Next Fed Chief Should Keep the Presses Running

Economist Withdraws Bank of Israel Candidacy

"One of Israel's top economists on Monday withdrew his candidacy as head of the central bank over an old shoplifting case. The incident happened in a Hong Kong airport seven years ago. Jacob Frenkel told Israeli media he mistakenly thought his companion paid for an item he was carrying. A committee reviewing his appointment raised questions about the incident, and Frenkel decided to withdraw his candidacy. Frenkel did not report the incident to the committee." Continue reading →

Continue ReadingEconomist Withdraws Bank of Israel Candidacy

US judge says ex-AIG CEO can depose Bernanke over bailout

"Federal Reserve Chairman Ben Bernanke should testify in the lawsuit by American International Group Inc's former chief Maurice 'Hank' Greenberg against the United States over the insurer's 2008 bailout, a judge ruled on Monday. Judge Thomas Wheeler of the U.S. Court of Federal Claims rejected the government's effort to keep Bernanke from being deposed, saying the Fed chairman was a 'central figure' in the decision to bail out AIG. 'Indeed, the court cannot fathom having to decide this multi-billion dollar claim without the testimony of such a key government decision maker,' Wheeler wrote." Continue reading →

Continue ReadingUS judge says ex-AIG CEO can depose Bernanke over bailout

Will the Federal Reserve Taper Off on QE?

"Why on earth would Mister Bernanke announce at this time that the Fed might taper off on QE? After all, Mister Bernanke is a committed Keynesian. Further, he is an ardent fan of President Roosevelt and his economic 'solutions.' So, what's up? It is highly unlikely that the leopard is changing his spots. Rather than assume he has, we might want to consider that his recent announcement to taper off on QE is a mere smokescreen – a tactic that will create a scare sufficient to give the Fed license to print like never before." Continue reading →

Continue ReadingWill the Federal Reserve Taper Off on QE?

The greatest food in human history?

"What is 'the cheapest, most nutritious and bountiful food that has ever existed in human history'? Hint: It has 390 calories. It contains 23g, or half a daily serving, of protein, plus 7% of daily fiber, 20% of daily calcium and so on. Also, you can get it in 14,000 locations in the US and it usually costs $1. Presenting one of the unsung wonders of modern life, the McDonald’s McDouble cheeseburger. The argument above was made by a commenter on the Freakonomics blog run by economics writer Stephen Dubner and professor Steven Leavitt, who co-wrote the million-selling books on the hidden side of everything." Continue reading →

Continue ReadingThe greatest food in human history?

Working Class Whites Are Giving Up Hope.

"Working class whites are giving up economic hope, according to a recent poll. They did not vote for Obama. The article did talk about single-mother households. They are in poverty, of course. What did the social planners expect? If the government subsidizes a particular behavior, we get more of it. That was the conservative argument a generation ago. It was dismissed as heartless by liberals. This is what 80 years of welfare state politics have produced. But of course, no one in the mainstream mentions this. Pessimism now reigns." Continue reading →

Continue ReadingWorking Class Whites Are Giving Up Hope.

Saudi prince defects from royal family

"He said he thanked God that helped him understand the truth about Saudi regime through a 'direct horrible personal experience' so that he could have a taste of what people suffered from throughout the country. 'With pride, I announce my defection from Al Saudi family in Saudi Arabia,' he wrote in his statement. 'All that is said in Saudi Arabia about respecting law and religion rules are factitious so that they can lie and pretend that the regime obeys Islamic rules.' He criticized the royal family for considering the country as its own property while silencing all voices from inside and outside the government calling for any change and reforms." Continue reading →

Continue ReadingSaudi prince defects from royal family

Teenaged entrepreneur denounces business-limiting French laws in Quebec

"17-year-old graphic designer Xavier Menard tried to register his company but was told by the Quebec business registry that he couldn't because the company's name--Wellarc--is too English. 'My first reaction was: you must be kidding,' Menard said. The bureaucrats were serious, so the mild-mannered teenager took his anger to YouTube. In a short video Menard attacks Pauline Marois's government, not for its desire to protect the French language, but for its 'idiotic' methods. In his video Menard points out Quebec's 7.5 percent unemployment rate, which is higher than the national average, and says it is even worse for youth." Continue reading →

Continue ReadingTeenaged entrepreneur denounces business-limiting French laws in Quebec