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Since 2008, Monetary Policy Has Cost American Savers about $4 Trillion
Posted in Audio Mises Wire.
After thirteen years with on average negative real returns to conservative savings, it is time to require the Federal Reserve to address its impact on savers.
Click here to listen.
The unstable stability council
From American Banker’s Bankshot Podcast:
R Street’s Alex Pollock appears on the most recent Bankshot Podcast. At first the Financial Stability Oversight Council wanted to target individual nonbanks that pose a risk to the economy. Now it wants to target activities rather than firms. Is that a good idea or a political ploy?
Click here to listen to the pull podcast.
Is the Fed Broke? — Grant’s Interest Rate Observer Podcast w/Alex Pollock Ep. 75
Alex J. Pollock, distinguished senior fellow at the R Street Institute in Washington and former president of the Federal Home Loan Bank of Chicago, calls in to discuss the state of our central bank’s own finances. @RSI @FHLBC
3:07 Unrealized losses and the printing press
6:27 Treasury issuance and the Fed
9:45 Negative capital. Does it matter?
15:55 Partially paid-in capital; echoes of the banking partnerships of old
Subscribe to the Grant’s Current Yield Podcast on iTunes, Stitcher, iHeart Radio, Google Play Music or listen from our website, www.grantspub.com
R Street’s Pollock on jumpstart legislation, capital reserves for SIFIs
Hosted by Investors Unite.
The podcast summarizes how to have realistic, fundamental reform of Fannie Mae and Freddie Mac. This requires having them pay a fair price for the de facto guarantee from the taxpayers on which they are utterly dependent, officially designating them as Systemically Important Financial Institutions (SIFIs) which they obviously are, and having Treasury exercise its warrants for 79.9% of their common stock. Given those three steps, when Fannie and Freddie reach the 10% Moment, which means economically they will have paid the Treasury a full 10% rate of return plus enough cash to retire the Treasury’s Senior Preferred Stock at par, Treasury should consider their Senior Preferred Stock retired. Then Fannie and Freddie could begin to accumulate retained earnings and begin building their capital in a sound and reformed context.