Federal Reserve flow of funds table F.107 (Rest of the World) showed that foreign investors — that for many years had been the primary support of US bond and commercial paper markets — were conspicuously absent. […]

In the article, “Is big bank complexity irreversible?”, I suggest that nationalization of certain big banks might be the only course for banks that have become too complex to manage, and that this would not be the end of capitalism. However, nationalization of major US banks, as is now being contemplated by the Obama administration, will […]

For the last twenty-five years, the Fed flow of funds accounts reveal two dominant forces supporting US stock and bond markets. Stocks: Stocks have been driven upwards by corporate executives and mutual fund managers who have backed stock-buybacks/executive option schemes to mutual advantage. As described in the article, “The quarter-century buyback […]