Chart of the Day – 10.22.2008

Let our journalists help you make sense of the noise: Subscribe to the Mother Jones Daily newsletter and get a recap of news that matters.


CHART OF THE DAY….Via Alex Tabarrok, a trio of boffins at the Minneapolis Fed argue that the credit crisis is a myth. Using Fed data they demonstrate that bank credit is up, loans and leases are up, commercial loans are up, consumer loans are up, and interbank loans are up. This is all potentially interesting, but unfortunately they then proceed to ruin their credibility by saying blandly that “while commercial paper issued by financial institutions has declined, commercial paper issued by nonfinancial institutions is essentially unchanged during the financial crisis.” Technically that’s true, but commercial paper from financial institutions makes up 80% of the entire market, and Figure 6A shows it plunging over the past month like a barrel jumper at Niagara Falls. You’d think that might have been worth a more vigorous mention.

I’m going to go out on a limb and suggest that using aggregate data like this somehow misses the story. It also probably doesn’t take into account all the term facilities and loan guarantees that the Fed has put in place over the past year. Still, seeing some data that challenges the conventional wisdom is always worthwhile. Even if it turns out to be wrong, reading the explanation of why it’s wrong should be instructive. Perhaps some enterprising econblogger will provide us with just that.

IT'S NOT THAT WE'RE SCREWED WITHOUT TRUMP:

"It's that we're screwed with or without him if we can't show the public that what we do matters for the long term," writes Mother Jones CEO Monika Bauerlein as she kicks off our drive to raise $350,000 in donations from readers by July 17.

This is a big one for us. It's our first time asking for an outpouring of support since screams of FAKE NEWS and so much of what Trump stood for made everything we do so visceral. Like most newsrooms, we face incredibly hard budget realities, and it's unnerving needing to raise big money when traffic is down.

So, as we ask you to consider supporting our team's journalism, we thought we'd slow down and check in about where Mother Jones is and where we're going after the chaotic last several years. This comparatively slow moment is also an urgent one for Mother Jones: You can read more in "Slow News Is Good News," and if you're able to, please support our team's hard-hitting journalism and help us reach our big $350,000 goal with a donation today.

payment methods

IT'S NOT THAT WE'RE SCREWED WITHOUT TRUMP:

"It's that we're screwed with or without him if we can't show the public that what we do matters for the long term," writes Mother Jones CEO Monika Bauerlein as she kicks off our drive to raise $350,000 in donations from readers by July 17.

This is a big one for us. So, as we ask you to consider supporting our team's journalism, we thought we'd slow down and check in about where Mother Jones is and where we're going after the chaotic last several years. This comparatively slow moment is also an urgent one for Mother Jones: You can read more in "Slow News Is Good News," and if you're able to, please support our team's hard-hitting journalism and help us reach our big $350,000 goal with a donation today.

payment methods

We Recommend

Latest

Sign up for our free newsletter

Subscribe to the Mother Jones Daily to have our top stories delivered directly to your inbox.

Get our award-winning magazine

Save big on a full year of investigations, ideas, and insights.

Subscribe

Support our journalism

Help Mother Jones' reporters dig deep with a tax-deductible donation.

Donate