(1) More educated yet underemployed (or jobless). Fed Chair Janet Yellen often suggests the failure of people finding work is “lack of skills” and promotes education. However, people with lots of degrees still have difficulty finding work. For example, there is an article in the Guardian newspaper (United Kingdom).
(2) Economists and unjustified haughtiness. Economists have a reputation (undeserved) of being based on math and science. However, the inability for economists to predict or explain economic crises, while providing ample blame to (or scorn of) the suffering, justifies the criticism that the economics profession receives.
Also, the continued belief in neoliberalism, which died in the 2008 financial crisis, yet Ph.D economists continue on with the zombie theory to keep with the profession’s “consensus” opinion.
This comment is in response to an op-ed by Greg Ip, often called upon during Fed monetary policy press conferences, which may color this apology for economists–“In Defense of the Dismal Science” (Wall Street Journal (paywall)).
(3) Re: Political violence & the aftermath of the 2008 financial crisis and Great Recession. The Economist (paywall). “The link between poor harvests and violence,” an article that reviews a working paper by Robert Warren Anderson, Noel Johnson and Mark Koyama.
Comment: All fault cannot be laid on economists alone. The massive failure of Congress to offer strong fiscal policy also contributes to the problem of financial suffering and political extremism.
The Federal Reserve Board (Board) publishes a weekly digest of its activities on its website. The digest is called the H.2 Release and is published every Thursday. The release for the week ending August 12, 2017, is below.
H.2 Release–Actions of the Board, Its Staff, and the Federal Reserve Banks; Applications and Reports Received
|Forms||Forms — final Board review to extend with revision the Ongoing Intermittent Survey of Households (FR 3016).
-Approved, August 14, 2017Forms — initial Board review to extend without revision the Quarterly Savings and Loan Holding Company Report (FR 2320).
-Proposed, August 17, 2017
Forms — initial Board review to extend with revision the Banking Organization Systemic Risk Report (FR Y-15).
|Regulations and Policies||Regulatory Capital Rules — publication for comment of interagency proposed rule to extend the current treatment under the regulatory capital rules for certain regulatory capital deductions and other requirements, as they apply to banking organizations not subject to the advanced approaches capital rules.
-Approved, August 14, 2017
|Enforcement||Heartland Bank, Little Rock, Arkansas — issuance of a prompt corrective action directive with the consent of the bank.
-Announced, August 17, 2017
Federal Reserve Board: Balance Sheet (H.4.1 Release)
The Board publishes data of factors affecting reserve balances. The digest is called the H.4.1 Release, and they are published every Thursday (or the next business day if the publication date falls on a federal holiday). The release for August 24, 2017, is below.
[Note: The blog will cover the line titled “Total Factors Supplying Reserve Funds.”]
H.4.1 Release–Factors Affecting Reserve Balances
Total factors supplying reserve funds (as of August 23, 2017): $4,510,530 (in millions of dollars). (On September 26, 2007, this amount was $900,473 (in millions of dollars)).
(See the release for further information.)