monetary policy

How a Pandemic Can Cause a Cash Crunch

Corporate Lines of Credit: ATM’s for Business [Note to Readers: The views expressed here are solely those of Ross Kaplan, and do not represent Edina Realty, Berkshire Hathaway (“Berkshire”), or any other entity referenced. Edina Realty is a subsidiary of Berkshire.] To understand the stress on the financial system now, start with millions of people...
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2016 Stock Market Rout: The “Pin” Theory of Investor Anxiety

When Rigged Markets Become Unrigged  “If all you have is a hammer, everything looks like a nail.” –Abraham Maslow “When asset bubbles predominate, everything looks like a pin.” –Corollary; Ross Kaplan In over 40 years(!) watching the stock market, I’ve conservatively witnessed at least 100 dips of 5% or more (20% corrections are rarer, and...
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The Fed’s Theme Song (Still): “Saved by Zero”

Janet Yellen Playing Ben Bernanke’s Favorite Tune Maybe, someday Saved by zero I’ll be more together Stretched by fewer Thoughts that leave me Chasing after My dreams disown me Loaded with danger Maybe I’ll win Saved by Zero Holding onto Words that teach me I will conquer Space around me Maybe I’ll win Saved by...
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2013 Person of the Year: Federal Reserve Chair Ben Bernanke

“For Better” . . . For Now  “The person, group, idea or object that for better or for worse . . . has done the most to influence the events of the year.”  –Time magazine’s criteria for selecting its “Person of the Year.” My selection for 2013 person of the year is Federal Reserve Chair...
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There Be (Financial) Dragons

“Collateral Damage & Unintended Consequences” Pimco’s Mohamed El-Erian is to today’s financial establishment what Walter Cronkite was to the American mainstream, a generation (or two) ago:  an unofficial spokesman whose views distill and encapsulate the broad consensus. So, his dispatches these days — including his latest, ‘Central Banks’ “Responsible Irresponsibility?”‘ — automatically command attention. Half-Time at The Crash of...
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Taking Stock: Dow Jones 12,400

Ben Bernanke’s Unintended Consequences The good news? Ben Bernanke has confounded naysayers, and proven that The Federal Reserve really can resuscitate (levitate?) the stock market — now up 85% from The Crash of ’08 lows. How? By printing money — lots and lots of money — and driving interest rates into the toilet (and keeping...
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