Bond market turmoil

The Financial Times was among news sites following up on the disaster we mentioned last week in the “junk,” or high-yield, sector of the US bond market. Eric Platt, one of these reporting recently on the FT site, sees a growing problem: After years of ignoring the low credit ratings and indebted balance sheets of

16 Dec 2015

Fading confidence in “junk” bonds?

In the wake of recent adverse news about an investment known as Third Avenue Management’s Focused Credit Fund, “lapsed blogger” David Dayen expresses concern in this post at Naked Capitalism that high-yield corporate bonds could be the next big US asset class to be the epicenter of a financial crisis. This market, which expanded briskly

12 Dec 2015

Updates on financial fragility in theory and in practice

For students of Hyman Minsky’s theory as it applies to today’s economy, Edward Chancellor’s review of Randy Wray’s latest new book will be interesting. Chancellor is a well-known observer of the financial scene from the UK. Chancellor notes that in large part Wray’s professor Minsky would have approved of and expected the US policy response

10 Dec 2015

Self-defeating austerity in a figure

downloadable version of the CDF above (non-Mathematica users will need the free CDF Player program, which can be downloaded at no charge at this link) Wolfram CDF technology allows one to interact with a mathematical diagram in a blog by moving a lever or changing some other control setting (requires download of a free browser

29 Nov 2015
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