5 Systemic Alarm Bells You Need To Know As Credit Suisse Fails
Credit Suisse has failed and been rescued. This may have prevented an immediate crisis, but danger remains.
Here are five alarm bells that are ringing loudly.
The Fed Is NOT Omnipotent. The Dollar Proves It
Seeing central banks as just another participant, and not the core of the financial system, leads to interesting insights, especially with regards to the USD.
Central Banks CAN’T Forecast Better, So Why Trust Them?
A quick way to see if central banks really have more insight into the future is by looking at their inflation forecasting record… which isn’t very good.
The Fed’s Focus On The Wrong Thing: RRP
The Fed’s printing of bank reserves has not addressed serious problems in the economy, which suggests that its current policy framework is ineffective at best.
How To Fix The Economy: More Loans, Not Bank Reserves! 3
We need to boost real money supply. New loans, not bank reserves, & shift the paradigm away from central bank omnipotence to allow new solutions to be found.
How To Fix The Economy: More Loans, Not Bank Reserves! 2
Where government intervention can help is by encouraging banks to make more loans, since lending is what stimulates economic growth, not bank reserves.
How To Fix The Economy: More Loans, Not Bank Reserves! 1
If the current bank reserves focused policy framework can’t fix the issue of falling labor participation & money velocity, how can we solve these problems?
Where Do Central Banks Need To Focus Their Attention? 2
The effects of poor loan growth and credit market accessibility due to failed monetary policy combine to adversely affect the labor market and money velocity.
Where Do Central Banks Need To Focus Their Attention? 1
Central Banks need to shift their focus to the areas which are currently not part of the mainstream conversation – like loan growth and credit availability.
Central Banks Focus On The Wrong Thing
The misplaced belief in the Fed’s omnipotence forces debates into areas that do not really matter. If our focus is misplaced, how can our problems be solved?
