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Adam Posen of the Peterson Institute will be on the podcast today to help us break down the final draft of the G-20 communique. A significant chunk of the communique addressed the creation of the Financial Stability Board as a successor to the Financial Stability Forum. Reading the communique, I wondered if that was just a name change or something more? According to Posen, it's a little bit of both.
By calling it a board, they are tying to convey that it's got not just a talking shop, which is a forum, but that it has some oversight responsibility. It gives it more of an air of authority that's why you call it a board.
It's not just the name that's changing, the new group will also be expanding its membership to include more emerging markets. And stay tuned -- Posen says we will be hearing more a lot more from the FSB in the future about international regulation and oversight.
categories: What I Didn't Understand Today
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Street vendor Son Luom hangs a $100 bill beach towel from her stand just outside the Federal Reserve in Washington, D.C.
Chip Somodevilla/Getty Images
Click for answers.
Here's the next installment of our podcast, in which Adam Davidson tackles questions from you, the listening public. Mike Pesca sat in -- don't miss the part where he asks Adam how a person voting on the economy could choose between John McCain and Barack Obama.
If we didn't catch your question in this round, check back with us. A few came in after we'd recorded this edition. One question, though, I'll edit and then turn over to the crowd. It's from Polly. Maybe you can help:
Regarding investing in CDs at Washington Mutual: While the principal amount should be safe if WaMu fails, it's my understanding that the FDIC often decreases CD interest rates since failing banks often offer above market rates as they desperately try raise capital.
Ideas, anyone?
Download the podcast here; subscribe here.
categories: What I Didn't Understand Today
5:46
- September 16, 2008
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Several people have asked about what, exactly, FDIC covers and if they cover $100,000 per person, per account, per family, etc.
Luckily, the FDIC has a FDIC: FDIC Consumer News Special Bulletin (Revised September 2006)handy guide.
The relevant paragraph:
Let's say you have four deposit accounts at one institution -- a checking account in your name alone (totaling $25,000), a savings account you own jointly with your spouse (your share equals $40,000), an account for a corporation you own (totaling $90,000), and your portion of an employer-sponsored profit-sharing account ($30,000). Even though the four accounts add up to $185,000, all of the money is fully insured by the FDIC because each account is in a different ownership category that is separately protected to $100,000.
categories: What I Didn't Understand Today
3:14
- September 16, 2008
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Adam and I are planning to answer another round of listener questions for a podcast today. Send 'em over. We'll do our best.
Yesterday's answers.
categories: What I Didn't Understand Today
12:24
- September 16, 2008
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The wicked helpful Currency Strategy newsletter from Brown Brothers Harriman landed this morning with a bit I cannot understand:
In the UK, where the BoE left rates unchanged as expected, sterling is being bolstered by upbeat comments from the London Time's Kaletsky. Adjustments in the crosses are also contributing to today's moves. The Japanese yen is steady, pulled by activity in the crosses. The Australian and Canadian dollars are firmer. Weak Australian trade data had little impact.
Anyone get that part about "adjustments in the crosses?" I know it means something -- maybe this? Later today, I'll call the wicked helpful Marc Chandler and ask him. Stay tuned.
UPDATE: Just called Chandler. He was out, but I got his colleague Win Thin, and he said . . .
Continue reading "'Adjustments In The Crosses' -- 09.04.08" >
tags: currency
categories: Currencies, What I Didn't Understand Today
10:37
- September 4, 2008
