about 11 months ago - 3 comments
During WWII the Treasury sold War Bonds ostensibly to help finance the War, but actually to pull currency out of circulation and help control inflation during a time of rationing and relative high wages in the civilian population. WHen did the name change occur. Does any one remember Savings Stamps? When sis they stop selling More >
about 11 months ago - 7 comments
My son is 3 years old. He has more toys than we know what to do with. It’s actually overwhelming because I spend half my life trying to figure out how to organize all of his stuff. His aunt has a real spending problem and much of the time she buys him things that he More >
about 11 months ago - 3 comments
I mean banks charge interest at maximum 15% per annum. But some of these guys promise returns of 25% and more! So why do they lose out that 10%? Why not simply borrow as much as is required from the bank?
about 11 months ago - 6 comments
Hedge fund contributors to Hillary Clinton include: Avenue Capital Group, whose employees contributed $30,000. Chelsea Clinton, the Senator’s daughter, has been hired by Avenue Capital, run by Marc Lasry. Others include Farallon Capital Management, which has bundled $46,000 in individual contributions; Blackstone Capital, Fortress, Perry Partners; Quadrangle, Centerbridge Partners, and many more Nicollette go back More >
about 11 months ago - 1 comment
If a municipal bond carries a coupon rate of 6.75% and is trading at par, what would be the equivalent taxable yield of this bond to a taxpayer in a 35% tax bracket?
about 11 months ago - 1 comment
Is there an online trading site that lets you by bonds from other countries?
about 11 months ago - 4 comments
They don’t really contribute anything to society, except legally steal from the working class.
about 11 months ago - 12 comments
about 1 year ago
It increases AD by giving people money through an increase in bank loans. So just shift the AD curve to the right. It will increase prices and GDP.
The trade balance might be left unchanged. Higher domestic prices may increase imports. But an increase in net business investments may increase exports leaving the balance the same.
about 1 year ago
OMO’s which concentrate on the buying of existing government securities (bonds) will increase the money supply and result in a lower target interest rate. Folks will increase their willingness a ability to borrow funds at the lower rate. Banks will now have more reserves in excess that can go out as loans and expand this activity. This all causes AD to increase and shift to the right. For a short run analysis it would help to know what range of AS you are in. Under the assumption that you were approaching a recession and that was why the expansionary policy was implemented, then you would see and increase in output/employment/GDP. If the Fed shoots for low rates for expansion then the value of the dollar is weakened since the rate of return on the new issued bonds will be lower. This would then result in stronger exports but weaker imports–shrinking the trade gap and boosting GDP thru the net export component of AD. Oh yeah, don’t assume inflation will show up from the increase in AD, since the economy was idle when the expansion occurred. The threshold of scarcity is not near and the price level would not necessarily get pressured upward.