bailout

States and local governments cannot rely on the Federal Reserve to print money. As they face financial difficulties not seen since the 1930s, this is significant. We see the consequence of this difference on display daily in the sovereign…

by Michael Hudson Interview with Michael Hudson, Eleftherotypia, Sunday December 12, 2010. 1. A recent article of yours, “Schemes of the Rich and Greedy,” cites the bailouts in Europe among such schemes. What are the main faults with…

Due to its size and importance, Germany has taken all of the criticism for enforcing a hard line on the austerity quid pro quo which allowed the euro zone bailouts to proceed. However, policy makers from a number of other countries share…

“It is not the responsibility of the Federal Reserve - nor would it be appropriate —  to protect lenders and investors from the consequences of their financial decisions." -Ben Bernanke, 31 Oct 2007 via David Rosenberg's…

The problem is that the current approach – centred on dealing with liquidity problems now and solvency issues later – is not working. A liquidity approach that delays the day of reckoning may be good regional politics, but it's…

Muddling through isn’t working. This column argues that troubled Eurozone nations should simultaneously open restructuring talks while continuing to service their debts normally. Germany, France, and other core Eurozone nations would have…

Despite its large size relative to the small Irish economy, the bailout of Ireland is not working. Risk premiums continue to rise. This column argues that part of the problem lies in a seemingly innocuous provision in the rescue facility…

by L. Randall Wray The Federal Reserve Bank was founded in an act of Congress in 1913, with its primary directive to “furnish an elastic currency.” Its mission was expanded in the aftermath of the Great Depression to include responsibility…

Link categoreis for today include the non-TARP bailouts and more on the Fed's lending program plus the European debt crisis, and WikiLeaks.

Walter Bagehot wrote an eponymous financial book in the 19th century called Lombard Street, giving advice on finance and banking. The most important and quoted piece of advice Bagehot gave was to the Central Bank, in this case the Bank of…