Leveraging in our financial system
This table shows you the leverage ratios of various financial institutions.
courtesy of Brandeis Rosenberg Inst.
Estimated balance sheet loss assuming 5% decline of leverage ratio and 50% capital loss recoupment.
What matters most for US Dollar?
Here are three graphs I plot from St. Louis Fed on relationship between Dollar (trade weighted against major currencies) and Fed funds rate, budget deficit and current account deficit. Red is dollar exchange rate. Click to enlarge.
1. Dollar and interest rate
2. Dollar and government budget deficit
3. Dollar and current account deficit
