The Fed's Proposed 'Buffer Tool' Is A Laugh Line Wrapped In A Bad Joke

Which speaks to the other basic point about presumed “capital buffers.” Credit is global, and the fact that it’s global is quite the understatement. Explicit in the Fed’s conceit is that its economists, having detected an economy in the process of “overheating,” could take some steam out of said economy through increased capital requirements for banks.

 

 

 

 

 

 

 

https://www.forbes.com/sites/johntamny/2019/08/18/the-federal-reserves-proposed-buffer-tool-shows-its-nutty-as-ever/#4a2ca25342ee

 

 

 

https://www.forbes.com/sites/johntamny/2019/08/18/the-federal-reserves-proposed-buffer-tool-shows-its-nutty-as-ever/#4a2ca25342ee

David Stockman's Contra Corner is the only place where mainstream delusions and cant about the Warfare State, the Bailout State, Bubble Finance and Beltway Banditry are ripped, refuted and rebuked. Subscribe now to receive David Stockman’s latest posts by email each day as well as his model portfolio, Lee Adler’s Daily Data Dive and David’s personally curated insights and analysis from leading contrarian thinkers.