Capitalism Without Capital (Palgrave Macmillan Studies in Banking and Financial Institutions)

Cover......Page 1
Contents......Page 8
List of Tables and Figures......Page 11
Preface......Page 13
Part One: Money......Page 20
1 Smith, Marx, and the debt society......Page 22
2 Termites in the basement......Page 25
3 The first thing in credit is character......Page 28
4 A road toward major banking crises......Page 31
5 "Capital insurance" and zero capital adequacy......Page 34
6 Is the Yankee economy too big to fail?......Page 37
7 The State Supermarket......Page 40
1 A common thread in financial crises......Page 44
2 Macroeconomic challenges: the macromarkets......Page 47
3 Macro-prudential analysis......Page 50
4 Effect of the credit crunch on macroeconomics......Page 53
5 The unwinding of asset bubbles......Page 55
6 Macroeconomic risks in a globalized economy......Page 58
7 The macroeconomic crisis may morph but it will not disappear......Page 61
1 Economic policy, fiscal policy, GNP, and GDP......Page 65
2 Money supply and monetary base......Page 68
3 Core and headline inflation......Page 72
4 The politics of inflation......Page 75
5 Central banks and the control of inflation......Page 78
6 The end of the non-inflationary consistent expansion: a scenario......Page 81
7 Recession and deflation......Page 83
1 Interest rates......Page 87
2 Monetary policy decisions and interest rate volatility......Page 89
3 Central banks have lost their ability to use interest rates as a weapon......Page 91
4 Jeffrey Lacker's remarks on the Fed's policies......Page 94
5 Interest rates and yield curves......Page 97
6 Managing interest rate risk......Page 99
7 Currency rates, interest rates, and political factors......Page 102
8 The US dollar: a case study of the cost of money......Page 105
Part Two: Debt......Page 108
1 The policy of more leverage led to disaster......Page 110
2 Market players must sort out their nonsense......Page 114
3 Gaming the capital requirements for banks......Page 117
4 The bubbles of the 1920s and the early years of this century are twins......Page 120
5 Leveraged lending and borrowing......Page 123
6 The swarm of self-inflicted wounds......Page 125
7 Can credit default swaps be the nemesis of the banking industry?......Page 128
1 Too much money has gone down dry holes......Page 132
2 Should central banks be involved in asset allocation?......Page 135
3 Confronting the deregulation of credit......Page 138
4 Learning from past financial crises......Page 141
5 The changing perspective of regulatory duties......Page 144
6 Accountability of financial supervision......Page 147
7 Progress in financial affairs is cyclical, not cumulative......Page 150
Part Three: Case Studies......Page 154
1 The ever-rising household exposure......Page 156
2 Interest rate risk and households indebtedness......Page 159
3 The pain of American households......Page 162
4 The housing crisis got globalized......Page 164
5 Learning a lesson from bad experience......Page 167
6 Is negative equity here to stay?......Page 171
7 Real estate property credit default swaps......Page 174
1. Mea culpa: Greenspan admits a flaw in his judgment......Page 178
2. Real economy, virtual economy and lobbying......Page 181
3. The virtual economy overtook the real economy in the 1970s......Page 184
4. Bankers have abused their prerogatives......Page 187
5. Extravagant pay but no disgorgement......Page 190
6. 23 February 2009: disgorging the illegal bonuses......Page 193
7. The 2008 manipulation of Libor by wounded banks......Page 195
8. The huge loophole of over-the-counter derivatives......Page 197
9. Marking-to-market: bankers don't want to hear the bad news......Page 200
1 Partners in averting a catastrophe......Page 203
2 The 15 November 2008 conference in Washington, DC......Page 206
3 Basel II failed to account for modern risk's polyvalence......Page 210
4 Principles of liquidity risk management by the Basel Committee......Page 213
5 Repositories of last resort: the European Central Bank......Page 216
6 Repositories of last resort: the Bank of England......Page 220
7 Repositories of last resort: the Federal Reserve......Page 222
8 The $2 trillion gaping hole......Page 224
1 Public money that has been thrown away......Page 228
2 Where has all the money gone?......Page 230
3 Can the economy afford huge bailouts?......Page 233
4 Preparing for the $700 billion US bailout......Page 236
5 A troubled "Troubled Assets Relief Program"......Page 239
6 Timothy Geithner and the Stability and Recovery Program......Page 243
7 Euroland tries to give birth to a common solution......Page 246
8 Russia discovers oligarchic capitalism's aftereffects......Page 249
9 Iceland's banks have reminded everybody that given enough rope anyone can hang himself......Page 252
Epilog......Page 256
Notes......Page 264
C......Page 277
F......Page 278
I......Page 279
M......Page 280
R......Page 281
U......Page 282
Z......Page 283