Forum Replies Created
-
AuthorPosts
-
TheBreeze
Participant[quote=jpinpb]
This has been my question. Everything the Fed is doing is screaming hyper-inflation down the road. BUT w/unemployment so high (I hear 20% in Detroit – surprised not more) and 10.5 in CA, I’m at a loss.
[/quote]Even with high unemployment, the Fed could probably force hyperinflation upon us if they go from being the LENDER of last resort to being the BUYER of last resort.
The Fed is already planning to buy outright $1.2 trillion in bad assets. This proposed public-private partnership thing looks like more of the same, except instead of the government providing the full 100% overpayment, the ‘private partners’ will have to put in 3% or so. This is ~32:1 leverage.
Probably what we’ll see is BofA putting up 3% to help the government overpay for Citi’s assets with Citi putting up 3% to help the government overpay for BofA’s assets.
So it looks to me like the government has decided that since it can’t force banks to lend or people to borrow, that it is just going to become the buyer of last resort in order to force hyperinflation upon us. They’ll do some of this through outright purchases and some of it through ridiculous schemes that are pitched as ‘loans’ but are really ostensibly purchases by the government due to the absurd leverage involved.
Participant[quote=jpinpb]
This has been my question. Everything the Fed is doing is screaming hyper-inflation down the road. BUT w/unemployment so high (I hear 20% in Detroit – surprised not more) and 10.5 in CA, I’m at a loss.
[/quote]Even with high unemployment, the Fed could probably force hyperinflation upon us if they go from being the LENDER of last resort to being the BUYER of last resort.
The Fed is already planning to buy outright $1.2 trillion in bad assets. This proposed public-private partnership thing looks like more of the same, except instead of the government providing the full 100% overpayment, the ‘private partners’ will have to put in 3% or so. This is ~32:1 leverage.
Probably what we’ll see is BofA putting up 3% to help the government overpay for Citi’s assets with Citi putting up 3% to help the government overpay for BofA’s assets.
So it looks to me like the government has decided that since it can’t force banks to lend or people to borrow, that it is just going to become the buyer of last resort in order to force hyperinflation upon us. They’ll do some of this through outright purchases and some of it through ridiculous schemes that are pitched as ‘loans’ but are really ostensibly purchases by the government due to the absurd leverage involved.
Participant[quote=jpinpb]
This has been my question. Everything the Fed is doing is screaming hyper-inflation down the road. BUT w/unemployment so high (I hear 20% in Detroit – surprised not more) and 10.5 in CA, I’m at a loss.
[/quote]Even with high unemployment, the Fed could probably force hyperinflation upon us if they go from being the LENDER of last resort to being the BUYER of last resort.
The Fed is already planning to buy outright $1.2 trillion in bad assets. This proposed public-private partnership thing looks like more of the same, except instead of the government providing the full 100% overpayment, the ‘private partners’ will have to put in 3% or so. This is ~32:1 leverage.
Probably what we’ll see is BofA putting up 3% to help the government overpay for Citi’s assets with Citi putting up 3% to help the government overpay for BofA’s assets.
So it looks to me like the government has decided that since it can’t force banks to lend or people to borrow, that it is just going to become the buyer of last resort in order to force hyperinflation upon us. They’ll do some of this through outright purchases and some of it through ridiculous schemes that are pitched as ‘loans’ but are really ostensibly purchases by the government due to the absurd leverage involved.
Participant[quote=jpinpb]
This has been my question. Everything the Fed is doing is screaming hyper-inflation down the road. BUT w/unemployment so high (I hear 20% in Detroit – surprised not more) and 10.5 in CA, I’m at a loss.
[/quote]Even with high unemployment, the Fed could probably force hyperinflation upon us if they go from being the LENDER of last resort to being the BUYER of last resort.
The Fed is already planning to buy outright $1.2 trillion in bad assets. This proposed public-private partnership thing looks like more of the same, except instead of the government providing the full 100% overpayment, the ‘private partners’ will have to put in 3% or so. This is ~32:1 leverage.
Probably what we’ll see is BofA putting up 3% to help the government overpay for Citi’s assets with Citi putting up 3% to help the government overpay for BofA’s assets.
So it looks to me like the government has decided that since it can’t force banks to lend or people to borrow, that it is just going to become the buyer of last resort in order to force hyperinflation upon us. They’ll do some of this through outright purchases and some of it through ridiculous schemes that are pitched as ‘loans’ but are really ostensibly purchases by the government due to the absurd leverage involved.
Participant[quote=Allan from Fallbrook]
And, I’m sorry, but the credit market remains pretty much a wreck, and on a world-wide basis. That’s the gravest danger we face right now, and where the strongest lessons of the Great Depression remain.[/quote]50% of Americans are one or two missed paychecks away from financial ruin:
A MetLife study released last week found that 50% of Americans said they have only a one-month cushion — roughly two paychecks — or less before they would be unable to fully meet their financial obligations if they were to lose their jobs. More disturbing is that 28% said they could not make ends meet for longer than two weeks without their jobs.
http://globaleconomicanalysis.blogspot.com/
Under these conditions, the credit market should be frozen because most Americans are an atrocious credit risk. If you are so worried about the credit market, how about you loan some of your personal funds to these people? Instead, like most liberals, you want to use my tax money and loan it to these imbeciles.
You and Barney Frank would make a great couple as you both share the same philosophies.
Participant[quote=Allan from Fallbrook]
And, I’m sorry, but the credit market remains pretty much a wreck, and on a world-wide basis. That’s the gravest danger we face right now, and where the strongest lessons of the Great Depression remain.[/quote]50% of Americans are one or two missed paychecks away from financial ruin:
A MetLife study released last week found that 50% of Americans said they have only a one-month cushion — roughly two paychecks — or less before they would be unable to fully meet their financial obligations if they were to lose their jobs. More disturbing is that 28% said they could not make ends meet for longer than two weeks without their jobs.
http://globaleconomicanalysis.blogspot.com/
Under these conditions, the credit market should be frozen because most Americans are an atrocious credit risk. If you are so worried about the credit market, how about you loan some of your personal funds to these people? Instead, like most liberals, you want to use my tax money and loan it to these imbeciles.
You and Barney Frank would make a great couple as you both share the same philosophies.
Participant[quote=Allan from Fallbrook]
And, I’m sorry, but the credit market remains pretty much a wreck, and on a world-wide basis. That’s the gravest danger we face right now, and where the strongest lessons of the Great Depression remain.[/quote]50% of Americans are one or two missed paychecks away from financial ruin:
A MetLife study released last week found that 50% of Americans said they have only a one-month cushion — roughly two paychecks — or less before they would be unable to fully meet their financial obligations if they were to lose their jobs. More disturbing is that 28% said they could not make ends meet for longer than two weeks without their jobs.
http://globaleconomicanalysis.blogspot.com/
Under these conditions, the credit market should be frozen because most Americans are an atrocious credit risk. If you are so worried about the credit market, how about you loan some of your personal funds to these people? Instead, like most liberals, you want to use my tax money and loan it to these imbeciles.
You and Barney Frank would make a great couple as you both share the same philosophies.
Participant[quote=Allan from Fallbrook]
And, I’m sorry, but the credit market remains pretty much a wreck, and on a world-wide basis. That’s the gravest danger we face right now, and where the strongest lessons of the Great Depression remain.[/quote]50% of Americans are one or two missed paychecks away from financial ruin:
A MetLife study released last week found that 50% of Americans said they have only a one-month cushion — roughly two paychecks — or less before they would be unable to fully meet their financial obligations if they were to lose their jobs. More disturbing is that 28% said they could not make ends meet for longer than two weeks without their jobs.
http://globaleconomicanalysis.blogspot.com/
Under these conditions, the credit market should be frozen because most Americans are an atrocious credit risk. If you are so worried about the credit market, how about you loan some of your personal funds to these people? Instead, like most liberals, you want to use my tax money and loan it to these imbeciles.
You and Barney Frank would make a great couple as you both share the same philosophies.
Participant[quote=Allan from Fallbrook]
And, I’m sorry, but the credit market remains pretty much a wreck, and on a world-wide basis. That’s the gravest danger we face right now, and where the strongest lessons of the Great Depression remain.[/quote]50% of Americans are one or two missed paychecks away from financial ruin:
A MetLife study released last week found that 50% of Americans said they have only a one-month cushion — roughly two paychecks — or less before they would be unable to fully meet their financial obligations if they were to lose their jobs. More disturbing is that 28% said they could not make ends meet for longer than two weeks without their jobs.
http://globaleconomicanalysis.blogspot.com/
Under these conditions, the credit market should be frozen because most Americans are an atrocious credit risk. If you are so worried about the credit market, how about you loan some of your personal funds to these people? Instead, like most liberals, you want to use my tax money and loan it to these imbeciles.
You and Barney Frank would make a great couple as you both share the same philosophies.
Participant[quote=Allan from Fallbrook]
I’m sure your personal Oracle at Delphi, Mr. Mortgage and the inestimable Mike Shedlock have much to say on the subject, but remember this: They have the luxury of opining from the safety of their offices, while officials the world over have to handle this situation, and in real-time. That’s the telling difference.
[/quote]This sounds like bleeding-heart liberal bullshit to me. I thought you fashioned yourself as a conservative. The paragraph above is exactly like something Barney Frank would say to justify government intervention in the housing market. Welcome to the dark side!
[quote=Allan from Fallbrook]
Lastly, if all of this is being done for no other reason than to provide political cover for various cronies and evildoers, well, what does that say about your guy, Obama? Wouldn’t that, in essence, make him the biggest conspirator of them all?[/quote]Yes, Obama is either foolish about economics or a total tool of the establishment. Or maybe both.
Participant[quote=Allan from Fallbrook]
I’m sure your personal Oracle at Delphi, Mr. Mortgage and the inestimable Mike Shedlock have much to say on the subject, but remember this: They have the luxury of opining from the safety of their offices, while officials the world over have to handle this situation, and in real-time. That’s the telling difference.
[/quote]This sounds like bleeding-heart liberal bullshit to me. I thought you fashioned yourself as a conservative. The paragraph above is exactly like something Barney Frank would say to justify government intervention in the housing market. Welcome to the dark side!
[quote=Allan from Fallbrook]
Lastly, if all of this is being done for no other reason than to provide political cover for various cronies and evildoers, well, what does that say about your guy, Obama? Wouldn’t that, in essence, make him the biggest conspirator of them all?[/quote]Yes, Obama is either foolish about economics or a total tool of the establishment. Or maybe both.
Participant[quote=Allan from Fallbrook]
I’m sure your personal Oracle at Delphi, Mr. Mortgage and the inestimable Mike Shedlock have much to say on the subject, but remember this: They have the luxury of opining from the safety of their offices, while officials the world over have to handle this situation, and in real-time. That’s the telling difference.
[/quote]This sounds like bleeding-heart liberal bullshit to me. I thought you fashioned yourself as a conservative. The paragraph above is exactly like something Barney Frank would say to justify government intervention in the housing market. Welcome to the dark side!
[quote=Allan from Fallbrook]
Lastly, if all of this is being done for no other reason than to provide political cover for various cronies and evildoers, well, what does that say about your guy, Obama? Wouldn’t that, in essence, make him the biggest conspirator of them all?[/quote]Yes, Obama is either foolish about economics or a total tool of the establishment. Or maybe both.
Participant[quote=Allan from Fallbrook]
I’m sure your personal Oracle at Delphi, Mr. Mortgage and the inestimable Mike Shedlock have much to say on the subject, but remember this: They have the luxury of opining from the safety of their offices, while officials the world over have to handle this situation, and in real-time. That’s the telling difference.
[/quote]This sounds like bleeding-heart liberal bullshit to me. I thought you fashioned yourself as a conservative. The paragraph above is exactly like something Barney Frank would say to justify government intervention in the housing market. Welcome to the dark side!
[quote=Allan from Fallbrook]
Lastly, if all of this is being done for no other reason than to provide political cover for various cronies and evildoers, well, what does that say about your guy, Obama? Wouldn’t that, in essence, make him the biggest conspirator of them all?[/quote]Yes, Obama is either foolish about economics or a total tool of the establishment. Or maybe both.
Participant[quote=Allan from Fallbrook]
I’m sure your personal Oracle at Delphi, Mr. Mortgage and the inestimable Mike Shedlock have much to say on the subject, but remember this: They have the luxury of opining from the safety of their offices, while officials the world over have to handle this situation, and in real-time. That’s the telling difference.
[/quote]This sounds like bleeding-heart liberal bullshit to me. I thought you fashioned yourself as a conservative. The paragraph above is exactly like something Barney Frank would say to justify government intervention in the housing market. Welcome to the dark side!
[quote=Allan from Fallbrook]
Lastly, if all of this is being done for no other reason than to provide political cover for various cronies and evildoers, well, what does that say about your guy, Obama? Wouldn’t that, in essence, make him the biggest conspirator of them all?[/quote]Yes, Obama is either foolish about economics or a total tool of the establishment. Or maybe both.
-
AuthorPosts
