Archive for category: Finance
By Pam Martens and Russ Martens: July 28, 2021 ~ You really can’t make this stuff up. A G30 Working Group Chaired by Tim Geithner, the former President of the New York Fed, that secretly sluiced $29 trillion to bail out the Wall Street banks from their hubristic collapse in 2008, released a report today calling for a Standing Repo Facility from the Fed that would be “open to a broad range of market participants….” The ink was barely dry on that report when the Fed issued a press release today saying it was doing just that. The Standing Repo Facility (effectively meaning that it is permanent until the Fed says otherwise) will be able to lend out $500 billion in overnight loans each day at below-market interest rates. If the $500 billion runs out, Fed Chair Jerome Powell has the discretion to increase it. The repo operations will be conducted … Continue reading →
One of the main culprits behind the economic collapse of 2008 was the combined speculation into what are called Collateralized Debt Obligations (CDOs) and the use of Credit Default Swaps (CDSs) to reduce the risk of investment for those buying CDOs. Roughly, here’s what went on. CDOs are really a form of gambling. When a More
By Pam Martens and Russ Martens: July 21, 2021 ~ The only time that tens of millions of Americans typically hear anything about the stock market on the evening news is when the S&P 500 Index sets a new high. That’s been happening a lot this year. For example, on June 30 it was widely reported that the S&P 500 had clinched its sixth record close for the year. But beneath the surface of that cheerful sound bite, major deterioration in the underpinnings of the market has been taking place. For example, recently there have been more stocks on the New York Stock Exchange setting 3-month lows than setting three-month highs. The same is true for the Nasdaq stock market and dramatically so for the smaller companies that trade Over-the-Counter (OTC). These measurements gauge the “breadth of the market.” When new lows consistently trounce new highs, it can be a forewarning of … Continue reading →
Progress in developing digital renminbi aids quest to undermine global order based on US currency
Investors in $17tn credit market ditch debt issued by groups in financially weaker provinces
Ashley Smith contextualizes the Biden administration program, and argues that it represents a Keynesian break from decades of neo-liberal policy. However, it is a break driven in the first instance by the imperative to rehabilitate the profitability of U.S. capitalism and U.S. imperial power.