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Arraya.
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August 16, 2009 at 8:09 PM #446167August 17, 2009 at 9:11 AM #445486
Arraya
ParticipantThe only solution to offset deflation, besides consumer incentives to borrow, is replacing private debt with public debt. I doubt that can go on too long before we reach absurdity, if were not there yet. Still, wages and employment are DEFLATING. So we have more debt to service and less ability to do it.
QE for treasuries has pissed off our creditors and prompted them to set up bilateral trade agreements so they don’t have to use the USD. QE has a shelf life as well.
Elizabeth Warren was on the news the other day speaking about the banks and said the tweek in mark to market accounting rules has causes us to slip into “denial” and the banks, including europe are in the same shape they were in a year ago. So nothing has been fixed. Interesting the contrast in listening to her vice Geithner.
Wall Street is being propped up by the purchase of overvalued MBSs that there is little private market for. That private market is not coming back anytime soon, if ever. This also has a shelf life. This is the “hidden” bailout. I wonder how much they are getting paid in fees for this?
The Fed is in a corner with no out and the inflation/deflation debate does not cover the structural problems. Printing can’t bring back the MBS market, create jobs or erase debt from consumers.
“You can’t stop what’s coming. It ain’t waiting on you. That’s just vanity”
-No Country for Old Men
August 17, 2009 at 9:11 AM #445679ParticipantThe only solution to offset deflation, besides consumer incentives to borrow, is replacing private debt with public debt. I doubt that can go on too long before we reach absurdity, if were not there yet. Still, wages and employment are DEFLATING. So we have more debt to service and less ability to do it.
QE for treasuries has pissed off our creditors and prompted them to set up bilateral trade agreements so they don’t have to use the USD. QE has a shelf life as well.
Elizabeth Warren was on the news the other day speaking about the banks and said the tweek in mark to market accounting rules has causes us to slip into “denial” and the banks, including europe are in the same shape they were in a year ago. So nothing has been fixed. Interesting the contrast in listening to her vice Geithner.
Wall Street is being propped up by the purchase of overvalued MBSs that there is little private market for. That private market is not coming back anytime soon, if ever. This also has a shelf life. This is the “hidden” bailout. I wonder how much they are getting paid in fees for this?
The Fed is in a corner with no out and the inflation/deflation debate does not cover the structural problems. Printing can’t bring back the MBS market, create jobs or erase debt from consumers.
“You can’t stop what’s coming. It ain’t waiting on you. That’s just vanity”
-No Country for Old Men
August 17, 2009 at 9:11 AM #446019ParticipantThe only solution to offset deflation, besides consumer incentives to borrow, is replacing private debt with public debt. I doubt that can go on too long before we reach absurdity, if were not there yet. Still, wages and employment are DEFLATING. So we have more debt to service and less ability to do it.
QE for treasuries has pissed off our creditors and prompted them to set up bilateral trade agreements so they don’t have to use the USD. QE has a shelf life as well.
Elizabeth Warren was on the news the other day speaking about the banks and said the tweek in mark to market accounting rules has causes us to slip into “denial” and the banks, including europe are in the same shape they were in a year ago. So nothing has been fixed. Interesting the contrast in listening to her vice Geithner.
Wall Street is being propped up by the purchase of overvalued MBSs that there is little private market for. That private market is not coming back anytime soon, if ever. This also has a shelf life. This is the “hidden” bailout. I wonder how much they are getting paid in fees for this?
The Fed is in a corner with no out and the inflation/deflation debate does not cover the structural problems. Printing can’t bring back the MBS market, create jobs or erase debt from consumers.
“You can’t stop what’s coming. It ain’t waiting on you. That’s just vanity”
-No Country for Old Men
August 17, 2009 at 9:11 AM #446090ParticipantThe only solution to offset deflation, besides consumer incentives to borrow, is replacing private debt with public debt. I doubt that can go on too long before we reach absurdity, if were not there yet. Still, wages and employment are DEFLATING. So we have more debt to service and less ability to do it.
QE for treasuries has pissed off our creditors and prompted them to set up bilateral trade agreements so they don’t have to use the USD. QE has a shelf life as well.
Elizabeth Warren was on the news the other day speaking about the banks and said the tweek in mark to market accounting rules has causes us to slip into “denial” and the banks, including europe are in the same shape they were in a year ago. So nothing has been fixed. Interesting the contrast in listening to her vice Geithner.
Wall Street is being propped up by the purchase of overvalued MBSs that there is little private market for. That private market is not coming back anytime soon, if ever. This also has a shelf life. This is the “hidden” bailout. I wonder how much they are getting paid in fees for this?
The Fed is in a corner with no out and the inflation/deflation debate does not cover the structural problems. Printing can’t bring back the MBS market, create jobs or erase debt from consumers.
“You can’t stop what’s coming. It ain’t waiting on you. That’s just vanity”
-No Country for Old Men
August 17, 2009 at 9:11 AM #446270ParticipantThe only solution to offset deflation, besides consumer incentives to borrow, is replacing private debt with public debt. I doubt that can go on too long before we reach absurdity, if were not there yet. Still, wages and employment are DEFLATING. So we have more debt to service and less ability to do it.
QE for treasuries has pissed off our creditors and prompted them to set up bilateral trade agreements so they don’t have to use the USD. QE has a shelf life as well.
Elizabeth Warren was on the news the other day speaking about the banks and said the tweek in mark to market accounting rules has causes us to slip into “denial” and the banks, including europe are in the same shape they were in a year ago. So nothing has been fixed. Interesting the contrast in listening to her vice Geithner.
Wall Street is being propped up by the purchase of overvalued MBSs that there is little private market for. That private market is not coming back anytime soon, if ever. This also has a shelf life. This is the “hidden” bailout. I wonder how much they are getting paid in fees for this?
The Fed is in a corner with no out and the inflation/deflation debate does not cover the structural problems. Printing can’t bring back the MBS market, create jobs or erase debt from consumers.
“You can’t stop what’s coming. It ain’t waiting on you. That’s just vanity”
-No Country for Old Men
August 17, 2009 at 9:57 AM #4455324plexowner
Participant“the banks are floating under 200 trillion of garbage CDS and derivatives”
the number is more like a quadrillion – I have seen analysts place it as high as 1.4 quadrillion
but what’s a few hundred trillion bucks one way or the other?
August 17, 2009 at 9:57 AM #445724Participant“the banks are floating under 200 trillion of garbage CDS and derivatives”
the number is more like a quadrillion – I have seen analysts place it as high as 1.4 quadrillion
but what’s a few hundred trillion bucks one way or the other?
August 17, 2009 at 9:57 AM #446064Participant“the banks are floating under 200 trillion of garbage CDS and derivatives”
the number is more like a quadrillion – I have seen analysts place it as high as 1.4 quadrillion
but what’s a few hundred trillion bucks one way or the other?
August 17, 2009 at 9:57 AM #446135Participant“the banks are floating under 200 trillion of garbage CDS and derivatives”
the number is more like a quadrillion – I have seen analysts place it as high as 1.4 quadrillion
but what’s a few hundred trillion bucks one way or the other?
August 17, 2009 at 9:57 AM #446316Participant“the banks are floating under 200 trillion of garbage CDS and derivatives”
the number is more like a quadrillion – I have seen analysts place it as high as 1.4 quadrillion
but what’s a few hundred trillion bucks one way or the other?
August 17, 2009 at 10:01 AM #445537Participant“Yes; when $ depreciates, you will see foreigners lapping up IBM, Intel, Microsoft, GE, Boeing etc., Lot of high quality real estate in NYC, Silicon valley, Seattle, Chicago etc., too. Walmart, Target, Costco, many Pharmaceutical companies, consumer products like Proctor, Johnson are all still valuable in a stagnant economy.”
I agree with you that foreign INDIVIDUALS might find purchases in the US appealing – especially if the US dollar is significantly devalued against other currencies
what we are talking about in this thread is the US dollar and US bonds on a national level – individuals making purchases inside the US doesn’t support the dollar or the bond
August 17, 2009 at 10:01 AM #445729Participant“Yes; when $ depreciates, you will see foreigners lapping up IBM, Intel, Microsoft, GE, Boeing etc., Lot of high quality real estate in NYC, Silicon valley, Seattle, Chicago etc., too. Walmart, Target, Costco, many Pharmaceutical companies, consumer products like Proctor, Johnson are all still valuable in a stagnant economy.”
I agree with you that foreign INDIVIDUALS might find purchases in the US appealing – especially if the US dollar is significantly devalued against other currencies
what we are talking about in this thread is the US dollar and US bonds on a national level – individuals making purchases inside the US doesn’t support the dollar or the bond
August 17, 2009 at 10:01 AM #446069Participant“Yes; when $ depreciates, you will see foreigners lapping up IBM, Intel, Microsoft, GE, Boeing etc., Lot of high quality real estate in NYC, Silicon valley, Seattle, Chicago etc., too. Walmart, Target, Costco, many Pharmaceutical companies, consumer products like Proctor, Johnson are all still valuable in a stagnant economy.”
I agree with you that foreign INDIVIDUALS might find purchases in the US appealing – especially if the US dollar is significantly devalued against other currencies
what we are talking about in this thread is the US dollar and US bonds on a national level – individuals making purchases inside the US doesn’t support the dollar or the bond
August 17, 2009 at 10:01 AM #446140Participant“Yes; when $ depreciates, you will see foreigners lapping up IBM, Intel, Microsoft, GE, Boeing etc., Lot of high quality real estate in NYC, Silicon valley, Seattle, Chicago etc., too. Walmart, Target, Costco, many Pharmaceutical companies, consumer products like Proctor, Johnson are all still valuable in a stagnant economy.”
I agree with you that foreign INDIVIDUALS might find purchases in the US appealing – especially if the US dollar is significantly devalued against other currencies
what we are talking about in this thread is the US dollar and US bonds on a national level – individuals making purchases inside the US doesn’t support the dollar or the bond
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