ACC Archives

Month: November 2011
Kotlikoff’s Zany New Idea

Laurence Kotlikoff is a very smart man. Many of his ideas are original. Some are good. But he can’t take his Keynesian glasses off long enough to see that his latest proposal is just more of the same that got...

Chinese Banks Reduce Reserves

China has announced a reduction in the bank reserve requirement. This comes at a time when the banks are believed to be insolvent and should have more, not less reserves against bad loans.

Fed Continues to Help Bail Out Europe’s Banks

It will be recalled that when the US Federal Reserve was forced by Congress to reveal information about what it did in 2008, some of the biggest loans were made to European banks. The story below shows how this is continuing.

SS and Medicare Increasing Income Inequality?

As the article below explains, the answer is yes. Why would this be? Because these taxes hit low income young people and transfer the money to affluent seniors. This is all part of what we have previously described as the...

Why’s the Fed Turning to the Mortgage Market?

It is likely that much of the Federal Reserve’s recent buying of US Treasuries (the government in effect  prints money to buy its own bonds), has been undertaken out of fear that US Treasuries might not otherwise find buyers.

Charades Played by Washington and Banks

A judge in New York has rejected a proposed financial settlement between Citibank and the Securities and Exchange Commission (SEC) over the bank’s handling of some mortgages leading up to the Crash of 2008. The judge says he wants to...

My Hope for OWS Is Gone

I had some hope for Occupy Wall Street. My hope was that the people on the street were actually committed to real change. It looks unfortunately like they are not.

Stimulus Created Jobs?

The headline of the story below from Politico says that the Congressional Budget Office estimates that President Obama’s stimulus bill created up to 3.3 million jobs.