Fed Moves to Free Up Credit for Consumers - WSJ.com

Fed Moves to Free Up Credit for Consumers - WSJ.com

Why such a tortuous and costly scheme? Why not simply let the fed lend the money to consumer directly. In conjunction with the IRS, individual taxpayers account can be set up in the same manner as some of the the I-bonds where individual taxpayers can borrow directly from the treasury. Setting this up on an Internet architecture would make it relatively straightforward and stimulate the economy faster than any other mechanism.

Op-Ed Columnist - The Big Dither - NYTimes.com

Op-Ed Columnist - The Big Dither - NYTimes.com
This article shows how even the "best and the brightest" seem not to see that the best approach to address this issue is as I describe in my article with the government becoming a market maker on TARP's illiquid asset. Nationalization in my view is not the answer, nor is some of the establishment of some of the private/ public funds. This structures merely add transactions cost and may only tangentially address the core issue

Steve Forbes Says Barack Obama's Economic Policy Repeats George W. Bush's Mistakes - WSJ.com

Steve Forbes Says Barack Obama's Economic Policy Repeats George W. Bush's Mistakes - WSJ.com
I strongly disagree with this argument against mark to market. As for dealing with market illiquidity, as I explain in my article on how to price illiquid TARP assets, when trading of assets economically vital is disrupted, government should set in to play a market maker's role, one of the additional positive results of such an approach being to enable effective market to market.

It is unfortunate that many it is shaping as republican vs. democrat thing.

BICs Trivia

This small questionnaire helps you make sure you've understood some basics about BICs. It will help improve presentation of the material provided. First reading the other BICs related material posted in this site may be helpful. Many Thanks

Introduction to BICs Exchange Systems

In this post, I just added a presentation that hopefully more clearly stresses the relevance and applicability of BICs as a sorely needed risk management tool

Fair Value Pricing, Government Market Making and TARP

I have just posted this on knol:

How to Value Illiquid Toxic Assets clogging up the banking system (Work in Progress)

This article argues that the administration would get a fairer deal in buying troubled assets by becoming a market maker on those assets bought at a most refined level of granularity using a proposed relatively straightforward market-making method. This approach further has the benefit of being minimally surgically invasive while most speedily addressing the problem.

Introduction to BICs

I am making my first post with an introduction to BICs that I have posted on my knol at:http://knol.google.com/k/phil-kongtcheu/introduction-to-basis-instruments/

This article provides a definition for the concept of Basis Instrument Contracts (BICs) and explains why such a concept is needed and useful in Finance, Economics and Mathematics. It explains how BICs are practical and represent both a prophylactic and a therapeutic structural tool for a crisis such as the 2008 crisis. BICs help mitigate market volatility and facilitate more robust risk management.

More about me also at: http://knol.google.com/k/phil-kongtcheu/-/24v2kgtuvzk2v/0#