Another Unstable Finger: Mauldin Economics
“There’s an old saying: Whenever the Fed hits the brakes, someone goes through the windshield,” said Michael Feroli, chief economist at J.P. Morgan. “You just never know who it’s going to be.” (The New York Times, March 16, 2023)
The Fed's Malfeasance after SVB
This past weekend saw extraordinary actions by the Fed to address the meltdown of Silicon Valley Bank. Did the central bank break the law by effectively authorizing unsecured loans to banks based on the face value—rather than significantly lower market value—of those banks' Treasury holdings?
First Republic Bank Shares Crash To New Record Low, JPM's Dimon Reportedly Leading Another Rescue Effort
Having dumped $30 billion of deposits into First Republic Bank last week, and the bank then being rumored to be pushing for a capital raise, The Wall Street Journal reports that JPMorgan CEO Jamie Dimon is leading discussions with the chief executives of other big banks about fresh efforts to stabilize the troubled regional.
The U.S. Banking System Was Destroyed By QE…And Negative Rates Killed It
Every time there is a banking crisis some scratch their heads and wonder; how could this happen? Surely it must be greed, bad risk management or lack of regulation. More intervention should solve it. However, all those excuses miss the most critical point: The U.S. banking system was destroyed by design, and the big banks played along with it.
Fed Liquidity Boost Is Bad for the Dollar, Deutsche Bank’s Ruskin Says: Bloomberg
The rush to add liquidity into the monetary system is “the most overt sign” of financial stress and a clear negative for the dollar, according to Alan Ruskin, chief international strategist at Deutsche Bank AG.