central banking
What were the leading stories from Enterprising Investor in January?
Switzerland will vote on a measure to end fractional reserve banking in 2018. Known as the Vollgeld, or "Full Money," Initiative, this proposal could transform modern finance as we know it. Jason Voss, CFA, curates a helpful reading list.
Warren Buffett once said, “You only find out who is swimming naked when the tide goes out.” Could the tide be receding for the US economy? Ron Rimkus, CFA, explores the question.
Like modern-day Drs. Frankenstein, central bankers are trying to artificially create life in the financial system. They have embraced extraordinary monetary policies to create economic growth where none would exist. And someday soon, the monsters they are experimenting with may wake up and break out, Ron Rimkus, CFA, explains.
What explains the recent surge in the S&P 500 index? We asked CFA Institute Financial NewsBrief readers what they thought was responsible for the strong performance.
“Radical monetary policy begets more radical policy,” says James Grant. “It seems to me at some point markets or voters will put a stop to this.”
There are plenty of risks to be mindful of given the current state of the markets. But a US recession is not one of them, says Will Ortel.
During the global financial crisis, excessive debt was the principal disease. It also turned out to be the principal cure. Whether it was called quantitative easing (QE) or something else, it all meant the same thing: increased debt — both in absolute terms and relative to GDP.
By the time you read this, we should know if the European finance ministers reached a deal Thursday to address the Greece situation. Either way, most believe that the "Greek tragedy" is unlikely to have a happy ending. And this situation bears watching because the end game will have significant implications for Greece, Europe, and the rest of the world.
The documentary film Money for Nothing: Inside the Federal Reserve is a critical evaluation of the policies pursued by the US Federal Reserve over the years. Released in the United States in 2013 and set amid the context of the global financial crisis, it explores what has become a rather familiar paradox: more debt is both the problem and the solution in pursuing economic growth.