“The Price of Time” and Broken Central Banking
[ad_1] Prague Astronomical Clock in the Czech Republic dates to 1410, and is the oldest astronomical clock still in operation. When Edward Chancellor’s The Price of Time: The Real Story of Interest hit shelves in the summer of 2022, it couldn’t have been more timely. The year-over-year growth rate of the consumer price index (“inflation”) […]
Expect More Banking Turmoil – Econlib
[ad_1] Banking crises seem to occur more and more frequently. And the federal government keeps broadening its insurance of bank depositors. I suspect that these two trends are related. Bloomberg reports that the Fed is backing off from a plan to require higher levels of bank capital, which was formulated in the wake of the […]
Are NYCB’s troubles the start of another banking panic?
[ad_1] Listen to this story.Enjoy more audio and podcasts on iOS or Android. Your browser does not support the <audio> element. A bank publishes lousy earnings or an “update” on its business. Its share price plunges. Its name is splashed on newspaper front pages. The bank’s bosses hold a conference call urging calm. Its share […]
How To Be Accidentally Right, Central Banking Style
[ad_1] On Monday, 114 climate activists were arrested in New York City after having made quite the spectacle outside the Federal Reserve building. The stunt came just days after tens of thousands of protesters gathered in Midtown to protest world leaders’ lack of viable action on “the climate crisis,” leading up to President Biden’s Wednesday […]
A Stock Market Hypothetical and a Banking Reality
[ad_1] Here’s a thought experiment that recently occurred to me. Imagine that many decades ago, financial regulators passed a law about investing in the stock market. According to this law, each person may buy stock in one company, and only one company. If you wanted to invest in the stock market, you must put all […]
Fed banking regulator warns A.I. could lead to illegal lending practices like excluding minorities
[ad_1] Michael Barr, vice chair for supervision of the board of governors of the Federal Reserve, testifies during a House Committee on Financial Services hearing on Oversight of Prudential Regulators, on Capitol Hill in Washington, DC, on May 16, 2023. Mandel Ngan | AFP | Getty Images The Federal Reserve’s top banking regulator expressed caution […]
Fed and ECB to set rates as banking turmoil mounts
[ad_1] This article is an on-site version of our The Week Ahead newsletter. Sign up here to get the newsletter sent straight to your inbox every Sunday Hello and welcome to the working week. The Federal Reserve and the European Central Bank both meet to set rates this week against a backdrop of gloomier domestic […]
The banking crisis is having a slow-burn impact on the economy
[ad_1] People walk by the New York Stock Exchange (NYSE) on February 14, 2023 in New York City. Spencer Platt | Getty Images A banking crisis that erupted less than two months ago now appears to be less a major broadside to the U.S. economy than a slow bleed that will seep its way through […]
ECB policymakers are rethinking rate hikes after banking turmoil
[ad_1] A sign for the European Central Bank (ECB) outside the bank’s headquarters in Frankfurt, Germany, on Thursday, Feb. 2, 2023. Alex Kraus | Bloomberg | Getty Images European Central Bank policymakers are reconsidering the path of interest rate hikes in light of last month’s banking turmoil, but remain committed to reining in core inflation. […]
What’s To Blame for the Banking Crisis?
[ad_1] In the past month, we’ve seen some of the largest bank failures since the Great Financial Crisis, with Silicon Valley Bank (SVB) leading the way, followed by Signature Bank and Credit Suisse. While averting financial meltdown should be the top priority, there is no better time to discuss what caused the crisis in the […]