KillerApps Macro: Money and Credit
02/22/12
Easy money has unintended consequences.
02/22/12
Speculative capital inflows have wreaked havoc in the destination economies.
06/18/10
Some financial institutions could commit moral hazard by leveraging their implicit high credit ratings and tax-payer guarantees to load up on high-risk debts and obligations.
06/17/10
Run-away securitization of housing mortgages abetted by loose credit rating, shaky credit default swaps, and cheap money led to a huge housing bubble in the US.
06/17/10
Even with short-term interest rates close to zero, the US economy has failed to respond to cheap money because of anemic bank lending.
06/17/10
Bond rating agencies found it hard to serve both the interests of bond investors and bond issuers since they were directly paid by bond issuers for favorable ratings.
05/13/10
The leverage cycle could amplify business cycles apart from routine monetary policies via interest rates.
05/12/10
Banks may be able to expand money supply through fractional-reserve loans, but more and more loans and other financing are channeled through the non-bank finance sector.
05/12/10
Treasury bonds are important instruments in regulating the money supply.
05/12/10
Savers are collateral damage in the Fed’s attempt to resuscitate a comatose economy during the Great Recession.
01/23/10
Bonds and stocks are alternative means of business financing where bonds offer steady income while stocks offer potentially substantial capital gains to investors.
01/23/10
The yield curve depicts how yields of Treasury debts vary with their borrowing durations.
01/22/10
Securitization of mortgage loans has fueled a US housing bubble whose bursting has put one in four mortgages under water.
01/21/10
The low interest rates intended to stimulate the recessed US economy after the US housing bust in 2007 – 2009 have inadvertently led to a housing boom in Hong Kong when Hong Kong has to lower its interest rates to defend its dollar peg.
01/21/10
Unregulated credit default swaps (CDS) gave shaky coverage to subprime loans.
01/21/10
The volume of credit card solicitations is an indicator of the cycle of credit expansion and credit contraction.