Liberty Street Economics

March 19, 2012

Failure Is No Longer a (Free) Option for Agency Debt and Mortgage‑Backed Securities

A recommended charge on settlement fails for agency debt and agency mortgage-backed securities (MBS) took effect on February 1, 2012.

March 5, 2012

Grading Student Loans

Student loans support the education of millions of students nationwide, yet much is unknown about the student loan market.

March 2, 2012

Historical Echoes: Gee Whiz? No, G6—The First Modern International Economic Summit

These days, one way that leaders of the major economies can help prevent and resolve financial crises is by informally crafting solutions with their international counterparts.

Posted at 7:00 am in Historical Echoes | Permalink
February 29, 2012

Is Risk Rising in the Tri‑Party Repo Market?

At the New York Fed, we follow the repo market closely and, with some of my colleagues, I’ve tried to keep readers of this blog informed about how the market works, how it’s being reformed, and what risks remain.

Posted at 7:00 am in Fed Funds, Financial Markets, Repo | Permalink
February 27, 2012

How the High Level of Reserves Benefits the Payment System

Since October 2008, the Federal Reserve has increased the size of its balance sheet by lending to financial intermediaries and purchasing assets on a large scale.

February 24, 2012

Historical Echoes: American Consumerism, Then and Now, with Product Timeline

A paper by Delia Cabe, “Buying into the Future,” which appeared in the fall 2001 Radcliffe Quarterly, tells in an arresting way the story of how Americans became such big spenders.

Posted at 7:00 am in Historical Echoes | Permalink | Comments (1)
February 22, 2012

Gulf War II Veterans Home Buyers Tax Credit

Over the next few years, large volumes of homes are likely to flow from foreclosure onto lenders’ balance sheets as “real estate owned,” or REO.

Posted at 7:00 am in Housing | Permalink | Comments (2)
February 17, 2012

Historical Echoes: Anthropomorphism in the Service of Child and Adult Financial Education

Everything seems to be anthropomorphized at one time or another—especially in advertising, where one needs to get a point across simply and memorably.

Posted at 7:00 am in Historical Echoes | Permalink | Comments (2)
February 15, 2012

Just Released: February’s Empire State Manufacturing Survey Signals a Further Pickup

February’s Empire State Manufacturing Survey (ESMS) indicates that manufacturing activity in New York State continued to expand for a third consecutive month.

The Dodd‑Frank Act’s Potential Effects on the Credit Rating Industry

Credit rating agencies have been widely criticized in recent years for the poor performance of their ratings on mortgage-backed securities (MBS) and other structured-finance bonds.

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