"In Washington, the Big Lie works,"

Tax Haven Loophole In Senate Bill... "Set Up A Chair On The Beach...And Call It Your Headquarters"
CONGRATULATIONS TO TAX-DODGING CORPORATIONS!
Chamber Of Commerce Gets What It Wants On Tax Dodger Ban From Senate Committee

"In Washington, the Big Lie works," wrote Mierzwinski in a blog post. "You make a claim that is so outrageous, no one will think you are making it up. In this case, the U.S. Chamber is claiming that unless we encourage offshore tax cheats by widening a loophole that encourages companies to set up a chair on the beach of a tax haven country and call it your headquarters, we will be in violation of our treaties and other trade agreements." LinkHere

Still chasing shadows?

This article on the continued troubles in credit markets was informative. But it raised a puzzle. Call me naive, but why does Fed policy seem to assume that the only way to repair credit markets is to return to the status quo ante, circa January 2007?
Here’s how I think about what has happened these past 2+ years. I think in terms of a sort of flow chart, showing ways that savers can connect with borrowers:

Traditionally — i.e., before the 1980s — the public put its money in banks, and banks made loans to borrowers: thus the diagonal arrow from banks to borrowers represents traditional banking.

By 2007, however, much of this traditional channel had been supplanted by shadow banking: debt was securitized, and the securities sold to the public — the straight arrow across the bottom of the figure.
Then the crisis came. The public rushed for safety, which basically meant guaranteed deposits. One rough indicator is holdings of MZM — money of zero maturity — which is the sum of bank deposits and money-market deposits: LinkHere