Category: In the News

Simple references to other existing news items. May include quotes/excerpts from third-party sources, but without additional commentary or perspective.

What happens when you “throw money at the problem”.

by Economoralist in ChiefIn the NewsLeave a Comment on What happens when you “throw money at the problem”.

MarketWatch: Exclusive: Fed is ‘throwing money in the wrong place,’ says Sheila Bair, former top banking regulator

https://www.marketwatch.com/story/exclusive-fed-is-throwing-money-in-the-wrong-place-says-sheila-bair-former-top-banking-regulator-2020-03-15

“They are throwing money in the wrong place,” Bair said of an unprecedented move by the Fed on Sunday to slash benchmark rates to zero and start a $700 billion Treasury- and mortgage-bond buying program.

“Lowering interest rates to zero doesn’t help if businesses can’t pay their loans back and they don’t have cash flow,” she said. “We need to get help out there, especially to small businesses and people already losing their jobs.”

“Companies, shame on them, but they have borrowed too much,” Bair said, added that’s a consequence of having 10 years of ultra-low rates.

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How well do you trust your “politically elected policy makers”?

by Economoralist in ChiefIn the NewsLeave a Comment on How well do you trust your “politically elected policy makers”?

Well, according to Ray Dalio, it’s “inevitable” that they’ll be the ones making some really important decisions that get to the very heart of your life’s purpose and value… (so hopefully, the answer is, you trust them?)

CNBC: Ray Dalio says the coming of Modern Monetary Theory favored by far left is ‘inevitable’

https://www.cnbc.com/2019/05/02/ray-dalio-says-the-coming-of-modern-monetary-theory-favored-by-far-left-is-inevitable.html

“The big risk of this approach arises from the risks of putting the power to create and allocate money, credit, and spending in the hands of politically elected policy makers”

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The rich got richer. Literally. Did you benefit?

by Economoralist in ChiefIn the NewsLeave a Comment on The rich got richer. Literally. Did you benefit?

New Statesman: How the world’s greatest financial experiment enriched the rich

https://www.newstatesman.com/politics/economy/2017/10/how-world-s-greatest-financial-experiment-enriched-rich

“Banks have been the biggest beneficiaries,” Paul Marshall, co-founder of Marshall Wace, one of Europe’s biggest hedge funds, wrote in the Financial Times in September 2015. “Asset managers and hedge funds have benefited, too. Owners of property have made out like bandits. In fact, anyone with assets has grown much richer. All of us who work in financial markets owe a debt to QE.”

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