JPMorgan: When Will We Learn?

Elliott Morss

This original link no longer leads to the story.

For all the shots we've taken at the banking industry here in O&G's Corner, it has made progress.

Arthur Burns, the central character in the 29th installment of the Central Banks series here in the O&G Corner (with mentions in other places), encouraged Nixon to adopt wage-price guidelines in the early seventies when inflation was at a 4.4% level.

In re-reading through your older posts, I re-discovered that you had studied HTML.

Can you give us a working example of how HTML goes about setting up a three column page so that we might index the tsunami?

I had the request posted in the Tsunami thread thread table of contents above the working zone. . . with a few replies but without the example we had hoped for.

Thank you, O&G

Two gentlemen for whom I have the greatest respect – from two different generations – Axel Leojonhufvud and Paul Krugman, unknowingly, perhaps for no more than a one instance – maybe two - represent opposite polarities in an issue revolving around but not limited to economics.

It's patently impossible to think of the paper innovations as anything other than a money offshoot or money substitute.

The only effective and still democratic means of bringing about change in the US is strong, community-wide social pressure.

When Volcker took the chair of the Fed in 1979 (September?), he came armed with the first step of his unique program of "under-supplying" banks with currency,

William Greider's Secrets of the Temple quoted David Stockman's description of the Reagan Administration's three pronged attack on the struggling economy composed of incompatible monetarism (contractions), supply-siders (pumping production) and the deficit spending (tax cuts),

Quoted dates vary between works. Case in point, unless I misread Allan Meltzer’s sequence as reported in installment 028, the Accord was reached on March the 20th and McCabe tendered his resigned the 9th. In The Balance of Power, by Tim Todd. Published by the Federal Reserve Bank of Kansas City, the Accord was reached March the 3rd. Both dates are properly referenced.

It might be judged that William McChesney Martin, Jr. was the perfect candidate for the Chairmanship of the Federal Reserve Board of Governors.

To retrace steps and fill in a few gaps,

The second half of the Glass-Steagall Bill (1933) provided a number of changes.

Prior to FDR's inauguration, communication flowed between Hoover and FDR in which Hoover sought to engage FDR in what might have been a consultant role or perhaps hoping to demonstrate his willingness to extend a helping hand and bring FDR up to speed.

“. . . But while they prate of economic laws, men and women are starving. We must lay hold of the fact that economic laws are not made by nature. They are made by human beings.”

Franklin Delano Roosevelt

What’s Ahead in Banking? 2012 coming into view.

The original Federal Reserve Act of December, 1913 is provided here. A quick description of a short piece of legislation.

It may be appropriate to note that to this point in the recount of development of economic theory only one American economist, Irving Fisher, has been mentioned.

Rambling about Malthus, Nutrition and Aging.

Malthus was right to be concerned about the growth of population! However, it may not be quantity of food, or something to introduce into our alimentary system, it may be the quality.

In 1911, Irving Fisher published his refinements to the Quantity Theory of Money in “The Purchasing Power of Money”. He brought attention to his contribution by setting out a goal with the proclamation

”I have proposed, very tentatively, a remedy for the evils of monetary instability. .

There's an echo in the room which is growing in intensity - beyond David Stockman.

Good!

We all know that the jobs number from the Department of BS are statistically massaged to kick the algorithms, and the EFSF, even it passes the current proposal with $400 Billion is just barely enough to temporarily bail out Greece (for a little while before the people of Greece shut the government down) but isn't even close to being what Italy needs, even if it does pass, much less the rest of the PIIGS, and Q2 and the last impact of QE 2 are long gone.

With a much stronger dollar, Q3 and Q4 exports don't look good and the Q2 GDP 3rd revisions don't change any thing except the MOPE.

O&G has the staff in housekeeping mode.

Excellent article and charts from Jesse today.
Click Here to Read

Financial Tsunami and a Solution - Table of Contents. . and messages.

Old and Gray's Corner: 020 Central Banks: Monetary Policy - The Fed's FOMC and currency adjustments - Part 13

We come now to the man whose main contribution was to assemble the varied economic theories in an attempt to create an harmonious whole out of the sometimes disconnected pieces.

I may be unavailable for an indeterminate period beginning tomorrow. Return depends on how I adapt to new circumstances. Nothing serious, just slightly personal.

Before I draw the curtains for a while, there are some things which would gratify me if I were able to express properly.

Short 30 minute cartoon film about the banking and the federal reserve system. It's a great easy to understand film.

The American Dream

http://www.youtube.com/watch?v=-AirhUmpNm0

"Video animation by "The Provocateur Network" explaining how The American Dream is really a nightmare.

It hardly seems a year and a half have past since Paul Krugman's lengthy piece evaluating the state of the economics profession appeared in the Sunday NYTimes, Sept 9, 2009. "How did the Economists get it so Wrong?" He started it off auspiciously, and then dropped a little grenade down the air shaft, a favorite trick of his.

It might easily be said that Ricardo’s work was an inquiry into not only economic operations but stability as well. Most of the Mill gang, as mentioned before, wrote not only of mechanisms, but a page could hardly be turned without encountering criticism of some sort pointing out pitfalls generated by abuses or excesses, from both the public and private sectors.