With the global financial system on a precipice, the firms appear to have decided it made more sense to embrace the benefits and protections of being a more traditional bank, including permanent access to borrowing from the Fed and more stable funding bases of customer deposits.
With credit drying up, Goldman Sachs and Morgan Stanley made the change to bank holding companies, which will allow them to take deposits to fund operations, while providing permanent access to borrow money from the Federal Reserve.
"That is a huge number, representing a long-term permanent increase in U.S. borrowing costs".
[Thus, ironically, the] pending "harsh" fiscal contraction measures were not some gratuitous roadblock that had been erected by enemies or aliens; that is, arbitrary impediments to the American economy's divine right to permanent prosperity, even if borrowed.
But excessive borrowing, adding to permanent national debt, to cut taxes or boost spending is the wrong approach.
The "for now" part concerns others who say that if clients and trading partners flee, even permanent direct access to Fed borrowing will not be enough.
This means that the gap between tax receipts and public spending is wider and more permanent than expected, forcing up borrowing and adding to the structural deficit.
The precise meaning of the photograph was the monkey borrowed, or a permanent part of the maverick Arizonan's household?—is lost to history.
Thelma Golden, the show's curator and the museum's deputy director, is forthright about wanting to turn borrowed items into permanent gifts, and exhibitions like this one are a way of making that point.
If the income shock is perceived as transitory and current demand depends on some concept of permanent income, and if households can borrow or use accumulated savings, their demand will not change.
