Tag Archives: federal reserve

Why Fed Chair Powell’s a Laughingstock

Posted on May 3, 2019 by MN Gordon

Powell believes this ”technical adjustment” will compel banks with excess reserves parked at the Fed to pursue better returns elsewhere.  Powell also believes lowering the IOER rate will keep the federal funds rate from deviating above its upper range. Continue reading →

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Why a Chernobyl-like Financial Disaster is Inescapable

Posted on April 26, 2019 by MN Gordon

In the early morning hours of April 26, 1986 – roughly 33 years ago – things went horribly wrong in the town of Pripyat, in northern Soviet Ukraine.  Reactor No. 4 at the V. I. Lenin Nuclear Power Plant, also known as the Chernobyl Nuclear Power Plant, was overwhelmed by an uncontrolled reaction.  There was no stopping it. Continue reading →

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What Were They Thinking?

Posted on April 19, 2019 by MN Gordon

One benefit of hindsight is that it imparts a cheap superiority over the past blunders of others.  We certainly make more mistakes than we’d care to admit.  Why not look down our nose and acquire some lessons learned from the mistakes of others? Continue reading →

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Unsolicited Advice to Fed Chair Powell

Posted on April 12, 2019 by MN Gordon

Behind closed doors, President Trump and Fed Chair Jay Powell are in freak out mode.  President Trump wants lower interest rates and artificial stimulus to fabricate GDP growth into the 2020 election year.  His prospects for a second term in office depend on it. Fed Chair Powell knows the economy’s toast.  Annualized GDP growth for the first quarter of 2019 was recently estimated at just 1.3 percent.  But he cannot yet admit it.  Specifically, he cannot cut rates just yet without triggering a market panic. Continue reading →

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