Remove 2006 Remove Balance Sheet Remove Productivity
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Fed Balance Sheet vs. Stock Market; Will QE Cause Inflation?

MishTalk

Fed Balance Sheet vs. Stock Market; Will QE Cause Inflation? Fed Balance Sheet vs. Stock Market. The risk premiums of risky securities have become unsustainably compressed in the process, and the Feds balance sheet has metastasized to $3.5 Fed Balance Sheet vs. Stock Market; Will QE Cause Inflation?

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Ivory Tower Academics, Inflation, and Kindness

MishTalk

And long-term rates are what matter for capital investment, which is key to increasing the economy’s growth potential and raising productivity.". From 2003-2006 the Fed ignored major bubbles in home prices, then commercial real estate. Inflation Benefit 3 (?): "Balance sheet recession" might go away! What Baum Left Out.

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Mish's Global Economic Trend Analysis: Michael Pettis on the China.

MishTalk

The most important effect is likely to be on demand for wealth management products. But one way or another we do have to write down the huge hidden losses in the country’s balance sheet, and this will mean not a collapse but rather many years of Japanese-style slow growth as the system grinds its way though its excesses.

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Next Phase in Currency Wars: Yen Plunge, Yuan Devaluation, and "Tidal Wave of Westbound Deflation"

MishTalk

It reminds me of the 2006/07 period when falling US house prices and then widening corporate bond spreads were totally ignored by upbeat equity investors until it was too late. It it is worth noting just how aggressive the BoJ has become with the central bank balance sheet already at around 55% of GDP and rapidly heading higher still!

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China Cash Crunch Eases, For How Long? Three Things China Needs to Avoid; When can Beijing Truly move to Market-Determined Interest Rates?

MishTalk

It is continuing to expand at twice the rate of nominal, or money, gross domestic product, and according to official data has pushed the credit to GDP ratio up to 215 per cent in 2013, and most likely more. But it is hard not to conclude that the authorities remain conflicted.

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Research Shows That Smaller M&A Deals Work Out Better

Harvard Business

Walter Thompson Company for $566 million in 1987 and Ogilvy for $864 million in 1989 — big acquisitions that stretched the company’s balance sheet. Strength of productivity program. This means improving productivity at a rate sufficient to put you in at least the top 30% of your industry.

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Descent of the Global Monetary System

Tom Spencer

This is a problem because it forces households and businesses to divert energy away from productive activity and towards managing and avoiding the cost of inflation. Countries may experience hyperinflation, which means rapidly rising consumer prices. While focusing intently on consumer prices, central banks tend to ignore rising asset prices.

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