tag:blogger.com,1999:blog-6297413898275266606.post6776833102863020800..comments2024-03-27T18:15:59.096+08:00Comments on Economics Malaysia: Modern Money Creationhishamhhttp://www.blogger.com/profile/06265308095732759923noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-6297413898275266606.post-5960353823875636462012-07-06T12:21:30.994+08:002012-07-06T12:21:30.994+08:00@hafeez,
Honestly, I'm a bit hazy about this ...@hafeez,<br /><br />Honestly, I'm a bit hazy about this as well. But from what I understand, ownership doesn't really change. The money market won't "own" the UST, just hold it as collateral against the loan to Credit Suisse. It's not a buy-sell transaction.hishamhhttps://www.blogger.com/profile/06265308095732759923noreply@blogger.comtag:blogger.com,1999:blog-6297413898275266606.post-16136765752432805782012-07-05T10:19:39.501+08:002012-07-05T10:19:39.501+08:00can u help me understanding the figure 2: an examp...can u help me understanding the figure 2: an example of collateral chain??? i dont get the part whre the UST enter the money market fund... those who are in the money market fund will secured the UST.. but who will buy it back from money market?? is it the hedge fund or credit suisze??? <br /><br />as far as i understood, the value of pledge should be higher than the value of collateral, so, hafeezhttps://www.blogger.com/profile/06948056911012012471noreply@blogger.comtag:blogger.com,1999:blog-6297413898275266606.post-77857143800861474432012-07-03T11:35:57.313+08:002012-07-03T11:35:57.313+08:00"Econoenglish translation: reserves don’t det..."Econoenglish translation: reserves don’t determine the capacity to lend; lending instead determines the level of reserves."<br /><br />Just adding a Steve Keen paraphrase here "Banks create credit money first and these money looks for reserves later"<br /><br />Agree that debt growth actually leads to overall economic growth cycle. But level of debt does not determine what Yang Oi Munhttps://www.blogger.com/profile/08333659459337405276noreply@blogger.com