October 14, 2008
Easy-to-Use Economic Indicators
The New York Fed has a wonderful feature on their website that gives descriptions of a dozen or so important economic indicators and each has a link to live data so that you get a current chart printed each time you visit! Check it out right here!
Last week, Wade and I were at a Federal Reserve Economic Education meeting in Biloxi, MS in a conference room with no cell/BB service. Talk about an exercise in patience; the ideas were really good, the presenters interesting, the accommodations very nice, but boy oh boy – no news is not good news all the time. In light of the recent events, please write us with any ideas you have for what you would like to see on the blog. I saw some scribbles on Wade’s notepad regarding the subject of collateralized debt obligations for the blog; I am thinking about something to do with the loss of the investment banking world – let us know what you are thinking….
Posted by Cindy at October 14, 2008 11:13 PM
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What about some commentary regarding the actual expected loss or gain on the $700 billion bail out? I have read a few articles on the subject and would like your take on what this program will actually cost the American tax payer. From what I understand, the bonds being purchased may hold some value. Will the government potentially come out ahead or is the actual price tag the stated $700 billion?
Posted by: David Rodziewicz at October 14, 2008 11:38 PM
I would like to see an indepth discussion on how short term interest rates are computed, and what happens when there is a negative real rate of return. I would like to find some where what investment demand is for the past two years by quarter and if Ig is shifting backward.
Posted by: Mike Fladlien at October 15, 2008 3:14 AM
David, it was recently announced that $250 billion of the $700 billion would be used to purchase preferred stock in several wisely chosen financial institutions. Preferred positions pay dividends. Therefore the taxpayer will receive a dividend from their preferred stakes and the institutions can buy them out after things improve. Hence, this portion of the rescue package probably will not cost the tax payer the entire $250 billion. In fact, they might actually make money. It’s true the government would have preferred not to intervene, but considering the alternative, the steps taken thus far seem to be prudent.
Posted by: Wade at October 15, 2008 8:43 PM
I'd like to know: isn't it strange that the target rate for trading federal funds as set by the Fed is lower - much lower in fact - than the CPI inflation rate? Is there any connection at all?
Thanks for considering
Posted by: Heike Nitschner at November 17, 2008 5:30 PM
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