Tag: "greenspan"

The FOMC’s Extended Period

________________________________________________________________ “The Committee will maintain the target range for the federal funds rate at 0 to ¼ percent and continues to anticipate that economic conditions . . . are likely to warrant exceptionally low levels of the federal funds rate for an extended period.” — FOMC Press Release 27 January 2010 _________________________________________________________________ “I support your recommendation. […]

Paulson on Mark to Market Accounting

During former Treasury Secretary Paulson’s interview with Larry Kudlow last night, Larry asked him about the role of mark to market accounting in the financial crisis. Secretary Paulson defended mark to market accounting. However, his context and his examples came from his many years of investment banking at Goldman Sachs where assets are traded daily […]

FOMC and the 4th of July

The FOMC met Tuesday and Wednesday.  I enjoyed two-day meetings when I was there, but we normally had only two two-day meetings per year, in February and July. The problems have grown lately and so have the number of two-day meetings. The July meeting was usually close to July 4th-closer than this one-and the British […]

Remarks made in Hong Kong on U.S. Financial Crisis

Here is the text of a speech I gave recently to a group of investors in Hong Kong… It's good to be back in Hong Kong, the poster child for free enterprise and a stable currency. My first visit was to speak at a conference on currency boards, at the Hong Kong Baptist University. How […]

Paying the Alligator

It may be sooner, or It may be later But one thing's for sure You've got to pay the alligator                           The Flatlanders The Bull is in the China shop Breaking everything in sight. The Bear is in the garbage dump Grubbing the last bite. The Alligator waits his turn Crouching kind of offish. Bear […]

More Critics of Mark to Market

On January 22, 2009 I posted a letter from Alan Greenspan on the inappropriateness of mark to market accounting for the commercial bank business model [click here]. I also quoted from a recent report issued by Paul Volcker on the same subject. For your convenience I'm posting two other pertinent letters on the subject: One by Treasury […]

Volcker and Greenspan: Mark to Market

  Paul Volcker on Mark to Market Accounting  Former Fed Chairman, Paul Volcker, Chairman of the Group of Thirty, Consultative Group on International Economic and Monetary Affairs, Inc., just released a study with recommendations on financial reform. Recommendation #12 on Fair Value Accounting reads as follows: “a. Fair value accounting principles and standards should be […]

Behind Closed Doors

In my October 29 New York Times blog post, I discuss my first-hand experience with the Federal Open Market Committee (FOMC).  See it here. Come With Me to the F.O.M.C.: A Sneak Peak Into Fed Life By Bob McTeer Today is the second day of a two-day Federal Open Market Committee meeting. The rate decision […]