Benjamin Strong was the first governor of the Federal Reserve from 1914 to 1928. He was also the first economist to use the interest rate to control the aggregate price of goods (the level of inflation), using credit based mechanisms called open market operations as the main tool to achieve his objective.
Aside from facing a few days off the trading floor last week in Wall Street, big banks will be the ones to benefit the most from the impacts of Hurricane Sandy. Wall Street and other financial centres, such as the City of London, have ridden the wave of extreme weather over the past year, including the drought in the US, driving food commodity prices to new heights.
For all their self-alleged sophisticated protestation, European banking entities have somehow ended roughly mirroring the very political disarray their CEOs blame for the slow deleverage levels in the industry and timid lending activity. That is, for their stubborn negative to accept that yesterday's boom succulent profits are today's poisonous hot air.