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Daily Archives: October 22, 2008

Mundell, Volcker and Stiglitz

talk at Columbia:

Bob Mundell and Joe Stiglitz, with Paul Volcker sitting in the middle

an interesting mix…I always like Mundell's bluntness…

European Economic Forecast

source: FT

(click to enlarge)

Ever expanding Fed balance sheet

Fed balance sheet has "exploded" literally, adding another $300 billion from my last update.

Two comments: 
1) The Fed either kill lending freeze very quickly by this massive injection of liquidity;
2) Fed got the wrong diagnosis and used wrong tools, and it won't save the economy and US dollar are going to have big trouble down the road.