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Blog29 Trillion Dollars, One Page
Randall Wray has a new one-pager following up on the release of a report detailing and tallying up the Federal Reserve’s extraordinary efforts to prop up the banking system—a report with the rather eye-catching headline number of $29.6 trillion. The Levy Institute working paper, the first in a series, is part of a Ford Foundation-supported [...] -
One-Pager No. 23$29,000,000,000,000: A Detailed Look at the Fed’s Bailout of the Financial System
The extraordinary scope and magnitude of the financial crisis of 2007–09 induced an extraordinary response by the Federal Reserve in the fulfillment of its lender-of-last-resort function. Estimates of the total amount of bailout funding provided by the Fed have ranged from its own lowball claim of $1.2 trillion to Bloomberg’s estimate of $7.7 trillion (just […] -
One-Pager No. 23
29.000.000.000.000: Μια λεπτομερή ματιά στη διάσωση του χρηματοπιστωτικού συστήματος από την Ομοσπονδιακή Τράπεζα των ΗΠΑ
Το εξαιρετικό εύρος και το μέγεθος της χρηματοοικονομικής κρίσης του 2007–09 προκάλεσαν μια εκπληκτική ανταπόκριση από την Fed στο πλαίσιο της λειτουργίας της ως δανειστής της εσχάτης προσφυγής. Υπάρχουν αρκετές εκτιμήσεις σχετικά με το συνολικό ποσό που παρείχε η Fed για τη διάσωση του χρηματοοικονομικού συστήματος. Η ίδια η Fed ισχυρίζεται ότι το ποσό ανέρχεται […] -
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Why don’t people quit their jobs more during a recession? asks tenured University of Chicago economist
It’s difficult to know where to begin with this post from Casey Mulligan (the comments are definitely worth reading). He starts off by implying that those who might want to characterize the recession as involving “a lack of hiring” are simply misled by the nature of aggregate data on hiring and separations. He goes on [...] -
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Bernanke’s 29 Trillion Dollar Fib Exposed
(cross posted at New Economic Perspectives) As I reported here and over at Great Leap Forward, a new study by two UMKC PhD students, Nicola Matthews and James Felkerson, provides the most comprehensive examination yet of the Fed’s bailout of Wall Street. They found that the true total cumulative amount lent and spent on asset [...] -
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Credit Default Swaps: Banking on Failure
Micah Hauptman of Public Citizen has drawn from the work of the Levy Institute’s Marshall Auerback and Randall Wray to put together a concise piece that lays out five core critiques of credit default swaps. Among the basic problems he highlights is a flaw-riddled process for determining when a CDS pays off: … there are [...] -
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Projections of EU GDP
In our latest Strategic Analysis we estimate that a cut in the general government deficit in the United States would have strong adverse effects on unemployment and a relatively smaller impact on the U.S. public debt-to-GDP ratio, since GDP would slow down with a cut in government expenditures and transfers. A similar strategy of deficit [...] -
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$29 Trillion Bailout: Response to Critics
OK, anytime one criticizes the Fed or Wall Street there will be some push-back by the professionals who serve their masters. (By contrast, Barry Ritholtz understood the argument, see here.) My original piece on Friday got picked up by a number of blogs and generated a lot of hostile responses. I expect that. It is obvious [...] -
Working Paper No. 698$29,000,000,000,000: A Detailed Look at the Fed’s Bailout by Funding Facility and Recipient
There have been a number of estimates of the total amount of funding provided by the Federal Reserve to bail out the financial system. For example, Bloomberg recently claimed that the cumulative commitment by the Fed (this includes asset purchases plus lending) was $7.77 trillion. As part of the Ford Foundation project “A Research and […] -
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The Shadow Banking System Is Slowly Imploding
Lessons from the bankruptcy of MF Global — the 8th largest in US history Yesterday, CEO Jon Corzine of MF Global appeared before the House Agricultural Committee. The hearing was a reminder that despite well intended legislation, including the Dodd-Frank Act, the speculative behaviors that brought down AIG and Lehman are still considered fair business [...] -
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The Fed’s $29 Trillion Bailout of Wall Street
UPDATE: to read the Working Paper (“$29,000,000,000,000: A Detailed Look at the Fed’s Bailout by Funding Facility and Recipient”) click here Since the global financial crisis began in 2007, Chairman Bernanke has striven to save Wall Street’s biggest banks while concealing his actions from Congress by a thick veil of secrecy. It literally took an [...] -
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The Crisis Behind the Crisis
In his latest installment, C. J. Polychroniou surveys the slow motion collapse of the eurozone and the ongoing fragility of the US economy, and insists that underneath it all lies a deeper crisis. What we are witnessing, he suggests, is not just the fallout from the latest banking panic or financial crisis, but a set [...]