Posts filed under “Federal Reserve”

Liquidity Trap and Excessive Leverage

Category: Bailouts, Credit, Federal Reserve, Think Tank

Big Data in Finance: Sentiment-extraction from News

Using big data in finance: Example of sentiment-extraction from news articles Nitish Sinha FEDS Notes, March 26, 2014     There is much discussion and research in finance on using “big data” to understand market “sentiment.” In this note, I will draw on some of my own research in behavioral finance–Sinha (2010) and Heston and…Read More

Category: Data Analysis, Federal Reserve, Sentiment

Is the Tide Turning Back?

Is the Tide Turning Back? Globalization & Monetary Policy Institute International Economic Update Dallas Fed March 25, 2014       Enlarge Economic activity improved for the world during the second half of 2013 as year-over-year growth ticked up to 3 percent with acceleration in advanced economies. Advanced and emerging economies contributed evenly (Chart 1).[1]…Read More

Category: Economy, Federal Reserve, Think Tank

Stress Testing the Fed

Stress Testing the Fed Jens H.E. Christensen, Jose A. Lopez, and Glenn D. Rudebusch Federal Reserve Bank of San Francisco, March 24, 2014     The Federal Reserve has purchased a large amount of longer-term bonds since December 2008. While these purchases have helped support a strengthening economy, the Fed’s resulting financial position may incur…Read More

Category: Federal Reserve, Think Tank

Fed “Stress Test” Results

Zion’s Bank — really? Fed “Stress Test” Results Source: WSJ

Category: Credit, Digital Media, Federal Reserve

Kocherlakota’s Dissent

Statement on Kocherlakota Vote at March 19, 2014, Meeting of the Federal Open Market Committee Narayana Kocherlakota – President FOMC March 21, 2014     Note* I view the March 19 Federal Open Market Committee (FOMC) statement as an unusually significant one. In that statement, the FOMC adopted new forward guidance about the evolution of…Read More

Category: Federal Reserve, Think Tank

The Fed and Hyperinflation

“It is after a trend has been reversed that the full effect of the preceding excesses is felt.” -George Soros For the last 5+ years we have seen a massive attempt by global central banks to prop up asset prices. The Federal Reserve has spearheaded the effort, increasing their balance sheet from less than $1…Read More

Category: Economy, Federal Reserve, Inflation, Markets

The Counter-Factual & the Fed’s QE

    “The weak recovery is proof that the Federal Reserve’s program of quantitative easement does not work.”   You do not understand the Counter-Factual. That is the only conclusion I can draw from what the very common criticism of the Federal Reserve policies of ZIRP and QE (above), and its inherent analytical error. The…Read More

Category: Federal Reserve, Philosophy

Yellen on Fed’s Stimulus Campaign

Janet L. Yellen, the Federal Reserve chairwoman, spoke at a news conference after the Fed announced it would reduce its monthly bond purchases because of the economic recovery’s progress.


click for video
NYT, March 19th, 2014

Category: Federal Reserve, Video

If They Will Lend, Someone Will Spend (on Something)

If They Will Lend, Someone Will Spend (on Something) Paul Kasriel March 17, 2014     Upon awakening from my winter hibernation way up here in beautiful northeastern Wisconsin, I have noticed that bank asset managers have been anything but hibernating. Rather, they have been quite busy expanding their loans and securities. As shown in…Read More

Category: Credit, Federal Reserve, Think Tank