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JWM in SD
Participant“If you think that the fed under the control of BB will raise rate in the face of recession/depression, then the last several months must have been a dream.”
You just proved that you don’t know what you are talking about. If Bernanke doesn’t begin to raise rates sometime in the next year or so, then bond market will do it for him at the cost of the housing market and economy in general. Sorry, but bondholders and creditors like to get paid or they get really upset.
Participant“If you think that the fed under the control of BB will raise rate in the face of recession/depression, then the last several months must have been a dream.”
You just proved that you don’t know what you are talking about. If Bernanke doesn’t begin to raise rates sometime in the next year or so, then bond market will do it for him at the cost of the housing market and economy in general. Sorry, but bondholders and creditors like to get paid or they get really upset.
Participant“If you think that the fed under the control of BB will raise rate in the face of recession/depression, then the last several months must have been a dream.”
You just proved that you don’t know what you are talking about. If Bernanke doesn’t begin to raise rates sometime in the next year or so, then bond market will do it for him at the cost of the housing market and economy in general. Sorry, but bondholders and creditors like to get paid or they get really upset.
Participant“If you think that the fed under the control of BB will raise rate in the face of recession/depression, then the last several months must have been a dream.”
You just proved that you don’t know what you are talking about. If Bernanke doesn’t begin to raise rates sometime in the next year or so, then bond market will do it for him at the cost of the housing market and economy in general. Sorry, but bondholders and creditors like to get paid or they get really upset.
Participant“I don’t get how someone can be very bearish on the economy and expect rates to rise at the same time. Especially knowing that BB is a recession/depression hawk. He’ll do what ever he can to keep us out of one.”
You really don’t understand what is going on do you?? We are a net debtor nation who is dependant on influx of foreign credit to fund the deficit spending. Bernanke doesn’t really control the interest rates, at least not directly. He can only influence them. Ultimately, it is the market for debt that will control them in the long term and their appetite for risk and a weak currency policy that pays them back in weaker dollars.
Participant“I don’t get how someone can be very bearish on the economy and expect rates to rise at the same time. Especially knowing that BB is a recession/depression hawk. He’ll do what ever he can to keep us out of one.”
You really don’t understand what is going on do you?? We are a net debtor nation who is dependant on influx of foreign credit to fund the deficit spending. Bernanke doesn’t really control the interest rates, at least not directly. He can only influence them. Ultimately, it is the market for debt that will control them in the long term and their appetite for risk and a weak currency policy that pays them back in weaker dollars.
Participant“I don’t get how someone can be very bearish on the economy and expect rates to rise at the same time. Especially knowing that BB is a recession/depression hawk. He’ll do what ever he can to keep us out of one.”
You really don’t understand what is going on do you?? We are a net debtor nation who is dependant on influx of foreign credit to fund the deficit spending. Bernanke doesn’t really control the interest rates, at least not directly. He can only influence them. Ultimately, it is the market for debt that will control them in the long term and their appetite for risk and a weak currency policy that pays them back in weaker dollars.
Participant“I don’t get how someone can be very bearish on the economy and expect rates to rise at the same time. Especially knowing that BB is a recession/depression hawk. He’ll do what ever he can to keep us out of one.”
You really don’t understand what is going on do you?? We are a net debtor nation who is dependant on influx of foreign credit to fund the deficit spending. Bernanke doesn’t really control the interest rates, at least not directly. He can only influence them. Ultimately, it is the market for debt that will control them in the long term and their appetite for risk and a weak currency policy that pays them back in weaker dollars.
Participant“I don’t get how someone can be very bearish on the economy and expect rates to rise at the same time. Especially knowing that BB is a recession/depression hawk. He’ll do what ever he can to keep us out of one.”
You really don’t understand what is going on do you?? We are a net debtor nation who is dependant on influx of foreign credit to fund the deficit spending. Bernanke doesn’t really control the interest rates, at least not directly. He can only influence them. Ultimately, it is the market for debt that will control them in the long term and their appetite for risk and a weak currency policy that pays them back in weaker dollars.
ParticipantActually Ex-SD, the scariest item in that list in #3, but it is also the least understood. Basically, the banking system is technically insolvent. There are solvent banks obviously, but on balance they aren’t. This is why the FDIC is ramping up the number of people they need for coming bank failures..they know..they should know. A bunch of consumer banks failing is not a big deal, but it is when commercial banks fail that we have a big problem and that is namely the lack of credit available for businesses to operate with. Watch what happens to employment when banks don’t want to rollover LOCs or jack up their interest rate and making capital investment too costly for small to medium size businesses. It’s a bitch when the CFO has to decide on whether or not to make the payroll or pay a critical materials vendor. Meanwhile, the customers are 90 days late because their hurting too.
This is the real systemic risk that keeps Bernanke awake at night, not whether a bunch of piddly consumer banks go down. It is the commercial level banking that would really put us in a bind if it goes sour.
ParticipantActually Ex-SD, the scariest item in that list in #3, but it is also the least understood. Basically, the banking system is technically insolvent. There are solvent banks obviously, but on balance they aren’t. This is why the FDIC is ramping up the number of people they need for coming bank failures..they know..they should know. A bunch of consumer banks failing is not a big deal, but it is when commercial banks fail that we have a big problem and that is namely the lack of credit available for businesses to operate with. Watch what happens to employment when banks don’t want to rollover LOCs or jack up their interest rate and making capital investment too costly for small to medium size businesses. It’s a bitch when the CFO has to decide on whether or not to make the payroll or pay a critical materials vendor. Meanwhile, the customers are 90 days late because their hurting too.
This is the real systemic risk that keeps Bernanke awake at night, not whether a bunch of piddly consumer banks go down. It is the commercial level banking that would really put us in a bind if it goes sour.
ParticipantActually Ex-SD, the scariest item in that list in #3, but it is also the least understood. Basically, the banking system is technically insolvent. There are solvent banks obviously, but on balance they aren’t. This is why the FDIC is ramping up the number of people they need for coming bank failures..they know..they should know. A bunch of consumer banks failing is not a big deal, but it is when commercial banks fail that we have a big problem and that is namely the lack of credit available for businesses to operate with. Watch what happens to employment when banks don’t want to rollover LOCs or jack up their interest rate and making capital investment too costly for small to medium size businesses. It’s a bitch when the CFO has to decide on whether or not to make the payroll or pay a critical materials vendor. Meanwhile, the customers are 90 days late because their hurting too.
This is the real systemic risk that keeps Bernanke awake at night, not whether a bunch of piddly consumer banks go down. It is the commercial level banking that would really put us in a bind if it goes sour.
ParticipantActually Ex-SD, the scariest item in that list in #3, but it is also the least understood. Basically, the banking system is technically insolvent. There are solvent banks obviously, but on balance they aren’t. This is why the FDIC is ramping up the number of people they need for coming bank failures..they know..they should know. A bunch of consumer banks failing is not a big deal, but it is when commercial banks fail that we have a big problem and that is namely the lack of credit available for businesses to operate with. Watch what happens to employment when banks don’t want to rollover LOCs or jack up their interest rate and making capital investment too costly for small to medium size businesses. It’s a bitch when the CFO has to decide on whether or not to make the payroll or pay a critical materials vendor. Meanwhile, the customers are 90 days late because their hurting too.
This is the real systemic risk that keeps Bernanke awake at night, not whether a bunch of piddly consumer banks go down. It is the commercial level banking that would really put us in a bind if it goes sour.
ParticipantActually Ex-SD, the scariest item in that list in #3, but it is also the least understood. Basically, the banking system is technically insolvent. There are solvent banks obviously, but on balance they aren’t. This is why the FDIC is ramping up the number of people they need for coming bank failures..they know..they should know. A bunch of consumer banks failing is not a big deal, but it is when commercial banks fail that we have a big problem and that is namely the lack of credit available for businesses to operate with. Watch what happens to employment when banks don’t want to rollover LOCs or jack up their interest rate and making capital investment too costly for small to medium size businesses. It’s a bitch when the CFO has to decide on whether or not to make the payroll or pay a critical materials vendor. Meanwhile, the customers are 90 days late because their hurting too.
This is the real systemic risk that keeps Bernanke awake at night, not whether a bunch of piddly consumer banks go down. It is the commercial level banking that would really put us in a bind if it goes sour.
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