Word: bankes
(lookup in dictionary)
(lookup stats)
Dates: during 1970-1979
Sort By: most recent first
(reverse)
...developed several yardsticks to gauge the supply of money. The narrowest of these is a number that is known as M-1 and is the total of currency in circulation plus other immediately accessible funds in commercial bank checking accounts. As measured by M1, the U.S. money supply at present is about $380 billion. A broader yardstick is M2, which includes all of M-1 plus savings deposits, and shows a money supply of $935 billion...
...them. Among other elements in this unmeasured or "invisible" money stock are the credit lines consumers get with their Visa or Master Charge cards, the borrowing they do with a second or even third mortgage on a home, and the ability of companies to borrow on a line of bank credit, in the commercial paper market or even through an overseas financing subsidiary...
Moreover, the definitions of money do not include a whole array of newfangled financing and banking techniques. These include money market mutual funds, which have grown from nothing seven years ago to more than $36 billion now. The funds put investor deposits into government and corporate securities that pay more than twice what is available in regular bank savings accounts; they also permit check writing against the investments, making the whole concept rather like super high-paying checking accounts. People are now putting money into these funds at the rate of $500 million a week...
...recession recur exactly 50 years later? Many conditions today look frighteningly similar to those of late 1929. Then the panic was spawned by the Federal Reserve's attempt to nip speculation by raising the discount rate a full percentage point from 5% to 6%. The nation's banks in 1929 had built up a pyramid of foreign debt. National City Bank judged that Peru had a "bad debt record, adverse moral and political risk, bad internal debt situation"-and then lent the country $90 million that was soon defaulted. Wall Street banks today have $48.7 billion in loans...
...Fifty years ago, a buyer had to put down only 10% of his own money to get a stock; he could use credit for the rest. Today, under a Federal Reserve rule, customers have to put up at least 50% of their own funds. The Fed can also slow bank credit to stop speculation from feeding a boom, a step it took last week. In addition, there was no watchdog Securities and Exchange Commission in 1929 (it was set up in 1934). Today the SEC closely polices financial markets to stop inside dealing and fraudulent company reports, which were rampant...