News: 2013-11-25

By Edward Harrison On Nov 25, 2013

This is my list of newsworthy items from around the web. As always, links do not equal endorsements. I have to say that since many of these links are controversial and I do not necessarily endorse them.

Markets

‘I can’t look at myself in the mirror’: Hendry reveals why he has turned bullish

Econbrowser: Forward rates and monetary tightening

Great Australian dream of home ownership becomes a fantasy | Business | theguardian.com

Banks and Regulation

Tarullo Backs More Capital for Firms Relying on Repo Funds – Bloomberg

George Says More Transparency Needed for Market Discipline – Bloomberg

IMF Tells Spanish Banks to Increase Capital Buffers – WSJ.com

Why Should Banks be the Only Ones with Accounts at the Fed? « naked capitalism

US banks warn Fed interest cut could force them to charge depositors – FT.com

IOER cut scepticism | FT Alphaville

The separation principle drives the Fed towards tapering | Gavyn Davies

“Mr Bernanke’s core point is that the Fed’s reading of monetary conditions now distinguishes sharply between two distinct factors, which are the expected forward path for short rates, and the term premium built into long term bond yields [1]. Asset purchases by the central bank are intended to affect the second of these factors, the term premium, but are not intended to give any signal to the markets about the Fed’s willingness to keep short rates at zero for a prolonged period ahead. “

Economics

Loanable funds — an inconsistent nonsense theory | LARS P. SYLL

Krugman on Sweden — as informative as junk mail before election day | LARS P. SYLL

BBC News – Krugman v Stiglitz on what’s holding back the recovery

“Stiglitz maintains that those sorts of inequality figures are the main impediments to economic growth. The rich pay less tax, so higher inequality depresses tax receipts. Also, most importantly, the poor consume more of their income than the rich.

This lower “marginal propensity to consume” of the rich was originally pointed out by John Maynard Keynes. “

A universal income is not such a silly idea – FT.com