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Yet Goldman's business standards manifesto also promised expanded balance sheet disclosures.
(Tyler Cowen) Is the Fed's expanded balance sheet a problem or an opportunity?
He told me then that the Fed's vastly expanded balance sheet was "in service to an idea that the Fed ought to control and manipulate the structure of interest rates in this financial economy".
Economists worry that pulling back too soon could drag the economy into a "double dip" recession; investors worried about big deficits and the Fed's expanded balance sheet say inflation could occur if the government is not watchful.
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Fannie Mae and Freddie Mac are expanding balance sheets in excess of 20%.
At Januarys Detroit Auto Show, GM said a GMAC partner would help secure an investment-grade rating, expand balance sheet capacity, improve competitive funding, and generate operational synergies, Hinchliffe says.
In Europe, the ECB has expanded its balance sheet by less than €1 trillion.
President Obama, at Geithner's instigation, recently proposed an alternative bank tax, in which big banks that greatly expanded their balance sheets would pay more.
After having expanded its balance sheet during the period 2008-11, pretty much as the Fed had done, the ECB started a period of dramatic contraction in its balance sheet (and thus in the euro money base) from 2012 onwards.
"I think monetary policy now is too loose", Weber warned, saying investors were struggling to "price risk" now that central banks have expanded their balance sheets and pumped huge amounts of liquidity into the markets.
Since late August, the Fed has expanded its balance sheet from about $900 billion to more than $2.2 trillion, creating $1.3 trillion that did not exist to replace some of the trillions wiped out by falling house prices and vengeful stock markets.
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