Congress should curb FSOC
: “Unless the power of the FSOC is curbed by
Congress, and soon, we may see many of the largest non-bank firms in the US financial system brought
under the control of the FSOC and ultimately the Fed.”
The challenges with regulating big banks.
The biggest banks have become even bigger since the financial crisis, the financial industry more concentrated. On the surface, at least, it seems banks are acting as if the
too big to fail
safety net continues to exist. The bigger they get, the more lik
ely it is that they can benefit from a government backstop in a crisis.”
No banking crisis in China.
China cannot have a Lehman moment. Its financial system does not work the way America's (or Japan's or Italy's) does. In fact, it is not clear how China can suffer any sort of acute financial crisis. And it is extremely unlikely that, if such a crisis did occur, it would do lasting harm to the global financial system.
latest National Mortgage Risk Index for home purchase loans shows that low-risk loans accounted for only 42.2 percent of home mortgages extended in January 2014, down from 45.4 percent in December 2013 and 46.4 percent in August 2013 (the starting date for this series). Loan risk is at a higher level than is conducive to long-run market
Fannie and Freddie are not OK.
Fannie Mae reported an annual profit of $84 billion for
$2013. Under the terms of the 2008 rescue, all of the profits will be sent to the Treasury. Fannie’s smaller rival, Freddie Mac is also set to confirm its astounding rebound next week. It’s a surprisi
ng turn of events and a windfall for the government
but potentially a looming disaster for shareholders who may lose
billions for standing by the beleaguered organizations.”
In other news
NEW WORKING PAPER
How people vote.
[voters] simply vote for their
party? Or do they target electoral outcomes and derive their vote in a more
manner? . . . Here, we have the strategic voter's decision-making process in a plurality system in a
nutshell: he votes for that one of the two leading candidates whose policy position he likes better.”
An examination of competition in the wireless market
success and leadership in the wireless sector is dependent on a variety of competing mobile technologies. Americans benefit from this competition through a wide range of mobile services, applications, and devices provided with network subscriptions that offer value for money.
Mark your calendar
2.28 GDP report released 3.6 Jobless claims released 3.7 Employment situation released 3.13
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