But the effect of a low bank rate can be reinforced by purchase of securities on the part of the central bank in the open market. Although Hawtrey was pessimistic that a low bank rate could counter a credit deadlock, he never denied the efficacy of open-market purchases. Hetzel cites the...
Explicitly mentioning open-market purchases, Hawtrey obviously did not withdraw the attribution of money to the behavior of the Fed. It’s true that he questioned whether the increase in the money stock resulting from open-market purchases had been effective, but that would relate only to Hetzel...
But whenbankscreate credit, and we have a chart about this, they create it to buy houses for mortgage credit. They create it essentially against collateral in the form of assets that are already in place because they want something to grab. The money that banks create is used to buy house...
And the market capitalization of these cryptos reached $3 trillion, trillion with a T, about a year ago, and then when the Fed started raising its interest rates and started doing QT, the whole thing just blows up. Companies go like POOF, and the money is gone, and whatever is left i...
Greg Bonnell speaks with David Toung, Senior Analyst, Argus Research about his outlook for the healthcare sector.
The number of securities upon the market is very large. Only a part of these se- curities is listed on the New York Stock Ex- change; but its listings alone comprise about sixteen hundred different issues aggregating about $26,500,000,000, and each year new list- ings are made ...
The company makes more than $ 1000 per MT of Zinc sold. Zinc prices may correct, but I doubt if a bear rally will take hold of Zinc. Add to this the fact that the company is sitting on great reserves, tons of cash and no debt. Subtract the cash and we get a market cap of Rs...
Dr Michael Burry, a physician suffering from Asperger`s syndrome made millions betting against the American housing market from 2005-07. He did this by locking himself up in his office and reading the prospectus of subprime mortgage bonds. To become a be
If interest rates are zero on all government bonds, then wouldn’t market participants not find the policy credible? For example, the markets would say to the CB, “We know you really want to and will try really hard to increase prices in the future, but we know that there is no way...
market to hide under you mattress. It also includes the times when you invest money into one fund, dislike your return, sell and buy another fund. That too is an inflow of money (purchasing the fund), an outflow of money (selling the fund), and then another inflow (buying the new ...