EconoMonitor

Great Leap Forward

  • KRUGMAN VERSUS MINSKY: Who Should You Bank On When It Comes to Banking?

    Last week I explained why Minsky matters, outlining his main contributions. See here: http://www.economonitor.com/lrwray/2012/03/27/why-minsky-matters-part-one/#idc-container This was, in part, a response to a blog by Paul Krugman that appeared to dismiss the importance of trying to find out “what Minsky really meant”. See here: http://krugman.blogs.nytimes.com/2012/03/27/minksy-and-methodology-wonkish/ But, more importantly, it was a response to his defense of […]

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  • WHY MINSKY MATTERS: Part One

    My friend Steve Keen recently presented a “primer” on Hyman Minsky; you can read it here: http://www.economonitor.com/blog/2012/03/a-primer-on-minsky/ In his piece, Steve criticized the methodology used by Paul Krugman and argued that Krugman could learn a lot from Minsky. In particular Krugman’s equilibrium approach and primitive dynamics was contrasted to Minsky’s rich analysis. Finally, Krugman’s model of debt deflation […]

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  • THE $7 TRILLION DOLLAR QUESTION THAT HAUNTS BANKS: When Will the Obama Administration Recognize that MERS Destroyed the Chain of Title Making All Foreclosures Suspect?

    I’ve been writing about the MERS monster since 2010. Here is one of my early pieces: http://www.huffingtonpost.com/l-randall-wray/merss-smoking-gun-part-1-_b_794713.html I suppose it is now safe to reveal that a staffer of Representative Marcy Kaptur put me on the trail of this fraud—in dollar terms it has to be the single biggest fraud in human history. In sheer […]

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  • SECRET DEALS, FORECLOSURE SETTLEMENTS, STRESS TESTS, AND VAMPIRE SQUID WHISTLE-BLOWERS: YOU JUST CAN’T MAKE THIS STUFF UP

    No Hollywood scriptwriter could plot a more implausible story. Here is the plotline sequencing: Bankers make NINJA loans, securitize them, and sell on to government GSEs Bankers destroy all the loan documents and begin random and fraudulent foreclosures, throwing millions of innocent victims out on the street GSEs sue bankers and force them to take […]

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  • THE FINANCIAL CRISIS AND SHREK’S ONION OF FRAUD

    In the last couple of weeks I’ve been pushing foreclosure fraud. Well, not pushing the fraud but rather arguing that foreclosure is fraud. It has to be. If a mortgage was registered at MERS, then the chain of title was broken. Broken chains mean the bank cannot foreclose. But that was MERS’s business model, and […]

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  • When is Foreclosure Theft? When the Mortgage is Recorded at MERS

    As I’ve said many times, whenever you criticize the banks you get pushback from their employees and lawyers handling their home thefts (whoops I meant “foreclosures”). About ten days ago I posted a brief update on the state of play, and received the usual comments. (Here: http://www.economonitor.com/lrwray/2012/02/22/yes-virginia-foreclosure-is-theft/#idc-container) Indeed, they went beyond “usual” as one bank […]

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  • Will the Central Bank Bail-Outs Ever End?

    Guess which US bank holds assets equal to a fifth of US GDP. Now guess what percent of its assets have extremely long maturities, greater than ten years: a) 10%; b) 20%; c) 30%; d) 40%; e) 50%. Answer: The Fed, and e) 50% of its assets have ten years or more to maturity. Recap. […]

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  • Yes, Virginia, Foreclosure Is Theft

    There’s a lot of pushback anytime someone points the finger at banks. As I’ve argued for a couple of years now, virtually all recent foreclosures really amount to theft. The banks have no legal standing to take homes. They created the MERS monster, which destroyed the chain of title and “lost” all the documents. That […]

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  • MMT On the Web

    In the past few days there have been a number of posts highlighting Modern Money Theory. Here are two at Washington Post: http://www.washingtonpost.com/mainstream-economics-and-modern-monetary-theory-a-family-tree/2012/02/17/gIQAiy6RKR_graphic.html  http://www.washingtonpost.com/business/modern-monetary-theory-is-an-unconventional-take-on-economic-strategy/2012/02/15/gIQAR8uPMR_story.html This story set off a number of interesting responses to/defenses of the MMT positions (to be clear, I think almost all the critiques are completely offbase; if you really want to […]

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  • LET’S MAKE A DEAL: The Bail-Out of Wall Street in Unusual and Exigent Circumstances

    It has been recognized for well over a century that the central bank must intervene as “lender of last resort” in a crisis. In the 1870s Walter Bagehot explained this as a policy of stopping a run on banks by lending without limit, against good collateral, at a penalty interest rate. This would allow the […]

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