Comments on: Counterparties http://blogs.reuters.com/felix-salmon/2011/07/28/counterparties-404/ A slice of lime in the soda Tue, 21 May 2013 18:32:30 +0000 hourly 1 http://wordpress.org/?v=3.4.2 By: hsvkitty http://blogs.reuters.com/felix-salmon/2011/07/28/counterparties-404/comment-page-1/#comment-29042 hsvkitty Thu, 28 Jul 2011 19:18:30 +0000 http://blogs.reuters.com/felix-salmon/?p=9142#comment-29042 Hmmmm, Americans eat that few greens? Only Australia is worse, as asking for a salad means they put a piece of lettuce on your burger. Also those "Fresh" express are days/week old. Why is that more convenient than the 4 minutes it takes to make the salad freshly cut as your steak cooks? And WOW, Greenspan got quite a shellacking in the commentary. My favourite, because it made me laugh: "What's really missing in the A-List is an article by Donald Trump or Sarah Palin. " Hmmmm, Americans eat that few greens? Only Australia is worse, as asking for a salad means they put a piece of lettuce on your burger.

Also those “Fresh” express are days/week old. Why is that more convenient than the 4 minutes it takes to make the salad freshly cut as your steak cooks?

And WOW, Greenspan got quite a shellacking in the commentary.

My favourite, because it made me laugh:

“What’s really missing in the A-List is an article by Donald Trump or Sarah Palin. “

]]> By: spectre855 http://blogs.reuters.com/felix-salmon/2011/07/28/counterparties-404/comment-page-1/#comment-29041 spectre855 Thu, 28 Jul 2011 19:09:13 +0000 http://blogs.reuters.com/felix-salmon/?p=9142#comment-29041 Every time today that I've re-read salad platform head I giggle out loud. Thanks for the laugh today! Every time today that I’ve re-read salad platform head I giggle out loud. Thanks for the laugh today!

]]> By: dWj http://blogs.reuters.com/felix-salmon/2011/07/28/counterparties-404/comment-page-1/#comment-29032 dWj Thu, 28 Jul 2011 13:23:03 +0000 http://blogs.reuters.com/felix-salmon/?p=9142#comment-29032 In re Greenspan: if the Fed prints $5 trillion of new money and puts it in a hole in the ground, it has no impact on the economy (unless it somehow influences expectations). If the fed doesn't print $10 billion of new money but someone puts $10 billion in a hole in the ground (or generally takes it out of circulation for many years), that's contractionary. Extra equity for banks held in the form of dollars -- I assume they wouldn't hold it in piles of factories or mining equipment -- doesn't tie up real resources, and would presumably be counteracted by the Fed in terms of its nominal effects; it would only make a difference if people expected it to actually enter circulation, i.e. if banks were expected to start crashing, i.e. exactly when you want people to expect looser monetary policy. I support bank capital requirements to stabilize the financial system, but if you want to support them as an automatic monetary stabilizer, that's okay, too. In re Greenspan: if the Fed prints $5 trillion of new money and puts it in a hole in the ground, it has no impact on the economy (unless it somehow influences expectations). If the fed doesn’t print $10 billion of new money but someone puts $10 billion in a hole in the ground (or generally takes it out of circulation for many years), that’s contractionary. Extra equity for banks held in the form of dollars — I assume they wouldn’t hold it in piles of factories or mining equipment — doesn’t tie up real resources, and would presumably be counteracted by the Fed in terms of its nominal effects; it would only make a difference if people expected it to actually enter circulation, i.e. if banks were expected to start crashing, i.e. exactly when you want people to expect looser monetary policy.

I support bank capital requirements to stabilize the financial system, but if you want to support them as an automatic monetary stabilizer, that’s okay, too.

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