Ask Bullwinkle J. Moose about the Federal Reserve’s recently disclosed $7.7 trillion in emergency loans to banks, and he would observe that sum is “antihistamine money. It ain’t nothing to sneeze at.” He would be right; $7.7 trillion is a…
Category: Other
Federal Reserve Data
The following data was referenced in a Real World Economics column regarding the $7.7 billion in Federal Reserve lending in the 2008-2010 period, which appeared in the Saint Paul Pioneer Press on December 1, 2011. Table h3hist6 list all borrowing…
All Fed Reserve boards are not created equal
Do regional bank directors, such as the president of the New York Fed, have any power in a financial crisis? And what does it mean when the media describe presidential candidate Herman Cain as having “served on the Federal Reserve…
Some anti-government, anti-tax rants trivialize meaning of liberty
Despite widespread disgruntlement and much pessimism about the direction of the nation, we in the United States still have much for which to give thanks this year. I personally am thankful for family, friends, health and that all the material…
Defense, corporate spending can’t be compared
With its deadline only a few days away, there seems a high probability that the deficit supercommittee will fail to reach consensus. Then, there may be cuts in defense spending that many, including Defense Secretary Leon Panetta, deem disastrous. Such…
“Money multiplier” underlies the ripple effect caused by Greece
How could debt problems in Greece – a country of 11 million – trigger a financial crisis not only across Europe but for the world as a whole? Although the current crisis is more pronounced than earlier ones in its…
Welcome to our new look!
One of the benefits of our move to a new site is that you can search for any word you want in a column. Looking for the column on the vise I pulled out of a dumpster? Type “dumpster” or…
‘Christmas tree tax’ much ado over industry promos
This week’s kerfuffle over “Obama’s tax on Christmas trees” is the most imbecilic one I have encountered in 30 years as an economist. Fortunately, informed commentators eventually introduced some sanity, but not before the Obama administration caved into pressure and…
Are customer losses really bad news for big banks?
Large national banks reportedly are losing many customers to smaller community banks and credit unions. This is a general, if delayed, response to public disgust at the actions and privileged treatment of the big banks over the past four years.…
A moral stance on issues can bring economic costs
North Dakota’s beef about Minnesota’s restrictions on electricity generated from coal together with California’s new greenhouse gas cap-and-trade system illustrate a knotty economic question. How does a society decide issues in which some, but not all, people feel morally bound…