[Rt.66]

Krugman in inflation

“Now, it’s true that the Fed has taken unprecedented actions lately. More specifically, it has been buying lots of debt both from the government and from the private sector, and paying for these purchases by crediting banks with extra reserves. And in ordinary times, this would be highly inflationary: banks, flush with reserves, would increase loans, which would drive up demand, which would push up prices.

But these aren’t ordinary times. Banks aren’t lending out their extra reserves. They’re just sitting on them — in effect, they’re sending the money right back to the Fed. So the Fed isn’t really printing money after all.”
——————

Personally I’ve seen a shrinking of credit available. Card companies are canceling zero balance cards I’ve had for 10 years. BofAssholes raised the rate on one with a balance to 18.73%. Had the card since 1991 never a late pay. I called them as they ussually lower the rate when asked, but this time they told me to suck an egg and then reduced my limit to drive the point home. They do not want to lend money.

Only one card still sends out promotional checks.

[Rt.66]

Krugman in inflation

“Now, it’s true that the Fed has taken unprecedented actions lately. More specifically, it has been buying lots of debt both from the government and from the private sector, and paying for these purchases by crediting banks with extra reserves. And in ordinary times, this would be highly inflationary: banks, flush with reserves, would increase loans, which would drive up demand, which would push up prices.

But these aren’t ordinary times. Banks aren’t lending out their extra reserves. They’re just sitting on them — in effect, they’re sending the money right back to the Fed. So the Fed isn’t really printing money after all.”
——————

Personally I’ve seen a shrinking of credit available. Card companies are canceling zero balance cards I’ve had for 10 years. BofAssholes raised the rate on one with a balance to 18.73%. Had the card since 1991 never a late pay. I called them as they ussually lower the rate when asked, but this time they told me to suck an egg and then reduced my limit to drive the point home. They do not want to lend money.

Only one card still sends out promotional checks.

[Rt.66]

Krugman in inflation

“Now, it’s true that the Fed has taken unprecedented actions lately. More specifically, it has been buying lots of debt both from the government and from the private sector, and paying for these purchases by crediting banks with extra reserves. And in ordinary times, this would be highly inflationary: banks, flush with reserves, would increase loans, which would drive up demand, which would push up prices.

But these aren’t ordinary times. Banks aren’t lending out their extra reserves. They’re just sitting on them — in effect, they’re sending the money right back to the Fed. So the Fed isn’t really printing money after all.”
——————

Personally I’ve seen a shrinking of credit available. Card companies are canceling zero balance cards I’ve had for 10 years. BofAssholes raised the rate on one with a balance to 18.73%. Had the card since 1991 never a late pay. I called them as they ussually lower the rate when asked, but this time they told me to suck an egg and then reduced my limit to drive the point home. They do not want to lend money.

Only one card still sends out promotional checks.

[Rt.66]

Krugman in inflation

“Now, it’s true that the Fed has taken unprecedented actions lately. More specifically, it has been buying lots of debt both from the government and from the private sector, and paying for these purchases by crediting banks with extra reserves. And in ordinary times, this would be highly inflationary: banks, flush with reserves, would increase loans, which would drive up demand, which would push up prices.

But these aren’t ordinary times. Banks aren’t lending out their extra reserves. They’re just sitting on them — in effect, they’re sending the money right back to the Fed. So the Fed isn’t really printing money after all.”
——————

Personally I’ve seen a shrinking of credit available. Card companies are canceling zero balance cards I’ve had for 10 years. BofAssholes raised the rate on one with a balance to 18.73%. Had the card since 1991 never a late pay. I called them as they ussually lower the rate when asked, but this time they told me to suck an egg and then reduced my limit to drive the point home. They do not want to lend money.

Only one card still sends out promotional checks.

[Rt.66]

Krugman in inflation

“Now, it’s true that the Fed has taken unprecedented actions lately. More specifically, it has been buying lots of debt both from the government and from the private sector, and paying for these purchases by crediting banks with extra reserves. And in ordinary times, this would be highly inflationary: banks, flush with reserves, would increase loans, which would drive up demand, which would push up prices.

But these aren’t ordinary times. Banks aren’t lending out their extra reserves. They’re just sitting on them — in effect, they’re sending the money right back to the Fed. So the Fed isn’t really printing money after all.”
——————

Personally I’ve seen a shrinking of credit available. Card companies are canceling zero balance cards I’ve had for 10 years. BofAssholes raised the rate on one with a balance to 18.73%. Had the card since 1991 never a late pay. I called them as they ussually lower the rate when asked, but this time they told me to suck an egg and then reduced my limit to drive the point home. They do not want to lend money.

Only one card still sends out promotional checks.

[Rt.66]

I’ve always thought that Japan is viewed as the successful model for dealing with a complete implosion of a country’s banking system. A lost decade or two is preferrable to a severe depression?

What’s the choice? Let the banks fail and the priviledged bond holder lose money or the sheeple lose a decade or two? Bond holders and bankers lose…OR…sheeple lose, hmmmmm, what will they chose?

I’m surprised by people that think we can’t have housing falling for 15 years here in the US. Despite all the arguements that say we aren’t going to end up like Japan, our Gov. keeps inching closer and following the same play book.

I’ve read stories of people in Japan who have kept up on mortgage payments for 15 years hoping to recover losses and they are still upside down. To me, that is a bankers wet dream at this point in the game.

[Rt.66]

I’ve always thought that Japan is viewed as the successful model for dealing with a complete implosion of a country’s banking system. A lost decade or two is preferrable to a severe depression?

What’s the choice? Let the banks fail and the priviledged bond holder lose money or the sheeple lose a decade or two? Bond holders and bankers lose…OR…sheeple lose, hmmmmm, what will they chose?

I’m surprised by people that think we can’t have housing falling for 15 years here in the US. Despite all the arguements that say we aren’t going to end up like Japan, our Gov. keeps inching closer and following the same play book.

I’ve read stories of people in Japan who have kept up on mortgage payments for 15 years hoping to recover losses and they are still upside down. To me, that is a bankers wet dream at this point in the game.

[Rt.66]

I’ve always thought that Japan is viewed as the successful model for dealing with a complete implosion of a country’s banking system. A lost decade or two is preferrable to a severe depression?

What’s the choice? Let the banks fail and the priviledged bond holder lose money or the sheeple lose a decade or two? Bond holders and bankers lose…OR…sheeple lose, hmmmmm, what will they chose?

I’m surprised by people that think we can’t have housing falling for 15 years here in the US. Despite all the arguements that say we aren’t going to end up like Japan, our Gov. keeps inching closer and following the same play book.

I’ve read stories of people in Japan who have kept up on mortgage payments for 15 years hoping to recover losses and they are still upside down. To me, that is a bankers wet dream at this point in the game.

[Rt.66]

I’ve always thought that Japan is viewed as the successful model for dealing with a complete implosion of a country’s banking system. A lost decade or two is preferrable to a severe depression?

What’s the choice? Let the banks fail and the priviledged bond holder lose money or the sheeple lose a decade or two? Bond holders and bankers lose…OR…sheeple lose, hmmmmm, what will they chose?

I’m surprised by people that think we can’t have housing falling for 15 years here in the US. Despite all the arguements that say we aren’t going to end up like Japan, our Gov. keeps inching closer and following the same play book.

I’ve read stories of people in Japan who have kept up on mortgage payments for 15 years hoping to recover losses and they are still upside down. To me, that is a bankers wet dream at this point in the game.

[Rt.66]

I’ve always thought that Japan is viewed as the successful model for dealing with a complete implosion of a country’s banking system. A lost decade or two is preferrable to a severe depression?

What’s the choice? Let the banks fail and the priviledged bond holder lose money or the sheeple lose a decade or two? Bond holders and bankers lose…OR…sheeple lose, hmmmmm, what will they chose?

I’m surprised by people that think we can’t have housing falling for 15 years here in the US. Despite all the arguements that say we aren’t going to end up like Japan, our Gov. keeps inching closer and following the same play book.

I’ve read stories of people in Japan who have kept up on mortgage payments for 15 years hoping to recover losses and they are still upside down. To me, that is a bankers wet dream at this point in the game.

[Rt.66]

[quote=4plexowner][img_assist|nid=11184|title=Bond bubble bursts?|desc=|link=node|align=left|width=460|height=284]

I find this chart interesting – this is the weekly price of the 30 yr US treasury bond

one of my beliefs is that financial bubbles ALWAYS fully retrace themselves – notice how the bond bubble rally that started in Nov ’08 has pretty much been retraced now – also notice the blip in Mar ’09 after Bernanke said the Fed would be buying bonds – that blip was pretty short lived – what is Ben going to do next? [/quote]

Great chart, thanks.

Benny had to move heaven and earth to get rates down in an environment that dictates high rates. Seems it couldn’t last.

[Rt.66]

[quote=4plexowner][img_assist|nid=11184|title=Bond bubble bursts?|desc=|link=node|align=left|width=460|height=284]

I find this chart interesting – this is the weekly price of the 30 yr US treasury bond

one of my beliefs is that financial bubbles ALWAYS fully retrace themselves – notice how the bond bubble rally that started in Nov ’08 has pretty much been retraced now – also notice the blip in Mar ’09 after Bernanke said the Fed would be buying bonds – that blip was pretty short lived – what is Ben going to do next? [/quote]

Great chart, thanks.

Benny had to move heaven and earth to get rates down in an environment that dictates high rates. Seems it couldn’t last.

[Rt.66]

[quote=4plexowner][img_assist|nid=11184|title=Bond bubble bursts?|desc=|link=node|align=left|width=460|height=284]

I find this chart interesting – this is the weekly price of the 30 yr US treasury bond

one of my beliefs is that financial bubbles ALWAYS fully retrace themselves – notice how the bond bubble rally that started in Nov ’08 has pretty much been retraced now – also notice the blip in Mar ’09 after Bernanke said the Fed would be buying bonds – that blip was pretty short lived – what is Ben going to do next? [/quote]

Great chart, thanks.

Benny had to move heaven and earth to get rates down in an environment that dictates high rates. Seems it couldn’t last.

[Rt.66]

[quote=4plexowner][img_assist|nid=11184|title=Bond bubble bursts?|desc=|link=node|align=left|width=460|height=284]

I find this chart interesting – this is the weekly price of the 30 yr US treasury bond

one of my beliefs is that financial bubbles ALWAYS fully retrace themselves – notice how the bond bubble rally that started in Nov ’08 has pretty much been retraced now – also notice the blip in Mar ’09 after Bernanke said the Fed would be buying bonds – that blip was pretty short lived – what is Ben going to do next? [/quote]

Great chart, thanks.

Benny had to move heaven and earth to get rates down in an environment that dictates high rates. Seems it couldn’t last.

[Rt.66]

[quote=4plexowner][img_assist|nid=11184|title=Bond bubble bursts?|desc=|link=node|align=left|width=460|height=284]

I find this chart interesting – this is the weekly price of the 30 yr US treasury bond

one of my beliefs is that financial bubbles ALWAYS fully retrace themselves – notice how the bond bubble rally that started in Nov ’08 has pretty much been retraced now – also notice the blip in Mar ’09 after Bernanke said the Fed would be buying bonds – that blip was pretty short lived – what is Ben going to do next? [/quote]

Great chart, thanks.

Benny had to move heaven and earth to get rates down in an environment that dictates high rates. Seems it couldn’t last.

[Author]

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