Credit Writedowns Sat 2010-05-22 20:22 EDT

On debt monetization

...Scott Fullwiler has a post out today at the UMKC Economics Blog which answers whether `monetizing the deficit' is even more inflationary. I will present some of his ideas...There is no difference between the monetization scenario and the government bond sale scenario except in regards to the Fed Funds rate. So, in a situation in which the Fed Funds rate is essentially zero, the Federal Government does not have to issue any bonds at all. Moreover, there is no difference in terms of the inflationary impact as the two scenarios have identical impacts on base money...

credit writedowns; debt monetization.

zero hedge Tue 2010-02-16 16:33 EST

The LBO Refi Wave Approaches: $800 Billion In Junk Debt Maturing By 2014, Adds To Multi Trillion Fixed Income Refi Cliff

After a mere $100 billion in projected debt maturities in the 2010-2011 period, the LBO wave of 2005-2007, largely financed with 5-7 year tenor bonds and loans, will set the refi scene on fire in the 2012-2014 period, when $700 billion of debt is set to mature. Should Fed Fund rates, and the yield curve begin to shift higher, the incremental cost of debt capital will destroy tens if not hundreds of billions of equity value over the next 5 years...

2014; 800; adds; Junk Debt Maturing; LBO Refi Wave Approaches; Multi Trillion Fixed Income Refi Cliff; Zero Hedge.

Sun 2008-11-23 00:00 EST

Mish's Global Economic Trend Analysis: CPI and CS-CPI vs. Fed Funds Rate

``By ignoring housing prices, the CPI massively understated inflation for years. The CPI is massively overstating inflation now.''

CPI; CS-CPI; Fed Fund Rates; Mish's Global Economic Trend Analysis.

Sat 2008-03-22 00:00 EDT

Econbrowser: Another 75

by James Hamilton; "there is some point beyond which lowering the fed funds rate further will do more harm than good"

75; Econbrowser.

Thu 2007-09-20 00:00 EDT

Calculated Risk: Fed Funds Rate Cut: Watch Long Rates

Calculated Risk; Fed Funds Rate Cut; Watch Long Rates.