Will Federal Reserve Losses Impact Fed Shareholders or Affect Monetary Policy?
“Since it started raising interest rates, the Fed has already experienced mark-to-market losses of epic proportions, and will soon face large operating losses, something it has never seen in its 108-year history.” ~ Paul H. Kupiec & Alex J. Pollock
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Are Cryptoassets The Great Scam?
“The regulations in the Lummis-Gillibrand Responsible Financial Innovation Act, made public on the same day as publication of Krugman’s article, are far more likely to provide a brighter future than prohibiting cryptocurrencies, stablecoins or other digital assets.” ~ Gerald P. Dwyer
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No, Putin Didn’t Cause Inflation
“Allowing politicians to blame Putin, corporations, shipping firms, billionaires, insufficient taxation, ‘greed,’ or other tired scapegoats is erroneous and misleading.” ~ Peter C. Earle
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Making Sense of Monetary Policy and the Future of Inflation
“The expansion of circulating currency has diminished to rates comparable to pre-pandemic lows. These factors and the current state of business inventories suggest that inflationary pressures are likely near their limit.” ~ James L. Caton
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The US-China Currency Rivalry: Choosing Sides
“Whether China’s currency will shave off a sizable portion of the dollar’s global usage is yet to be seen. Still, there is no doubt that the world is entering a new monetary rebalancing.” ~ Ethan Yang & Dorothy Chan
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Inflation Slowed in April, But Remains High
“The Fed increased its federal funds rate target by 50 basis points in May 2022 and looks set to follow with similar rate hikes in June and July. The price level data from April shows no anticipatory effects of the policy.” ~ William J. Luther
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When A Dollar Isn’t a Dollar
“A few weeks ago the stablecoin called TerraUSD broke its peg from the dollar and collapsed along with the protocol’s flexible price LUNA token, and now you know why.” ~ Joshua R. Hendrickson
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Inflation: What Causes It, and When Will it Subside?
“The growth rate of currency in circulation has been back to pre-crisis rates for at least 2 quarters. We should expect inflation and the growth rate of expenditures to follow and inflationary winds to subside as a result.” ~ James L. Caton
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A Musk Inspired Anti-ESG Takeover Wave?
“If incentives cannot be better aligned between management and stockholders from within, then somebody from the outside must step in so that the economy doesn’t suffer the large costs associated with underutilized assets.” ~ Robert E. Wright
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Twitter: The Tale of the Tape
“These times of polarization pose real challenges to mass marketers. Companies such as Twitter and Disney offend the sensibilities of the mass market at their own peril. And their recent stock prices suggest they could do better.” ~ Clifford F. Thies
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Carl Icahn’s Creative Destruction
“Carl Icahn is a tour-de-force, relentlessly propelling creative destruction over his nearly 60-year career. Creative destruction is sometimes painful but ultimately good, and activist investors like Icahn should be celebrated rather than maligned.” ~ David Waugh
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Zero-Covid Policy Threatens Hong Kong’s Status as an International Financial Hub
“Hong Kong is still the main gateway into China. However, its liberty purge spoiled business confidence, and the long-term effects of ongoing geopolitical tensions are yet to be seen.” ~ Dorothy Chan
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