Big Debt Plus Rising Interest Rates = Big Danger

Economy, Policies

Big Debt Plus Rising Interest Rates = Big Danger

If there is anything Wall Street banks crave is relief. Primarily relief from the potential for failure and, next, relief from holding much, if any, equity capital. These banks like their capital tiny and their profits huge. Losses should be socialized. After all, we want the ATMs to keep spitting out cash.

The SLR will be allowed to expire at the end of this month before most of us knew what it was—”supplementary leverage ratio.”  When covid hit the fan last March, as the WSJ explains, “The ratio measures capital—funds that banks raise from investors, earn through profits and use to absorb losses—as a percentage of loans and other assets. Without the exclusion, Treasurys and deposits count as assets [not equity].”

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Solutions To America’s 7 Biggest Problems For We, The People

Policies, Society

Solutions To America’s 7 Biggest Problems For We, The People

“We the People of the United States, in Order to form a more perfect Union, establish Justice, insure domestic Tranquility, provide for the common defense, promote the general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity, do ordain and establish this Constitution for the United States of America.”

Our central thesis is that as a nation, we are divided and stalled out by deep, cynical, fully paid for partisanship at a time when the stakes of delaying pragmatic decisions to address the Five Fates could not be higher. What is to be done?

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