tag:blogger.com,1999:blog-6616959642391988608.post5674217073899745754..comments2024-03-28T00:18:25.641-07:00Comments on Calafia Beach Pundit: Bank lending is boomingScott Grannishttp://www.blogger.com/profile/14028519647946868684noreply@blogger.comBlogger6125tag:blogger.com,1999:blog-6616959642391988608.post-36677765106916565182014-12-07T14:21:20.186-08:002014-12-07T14:21:20.186-08:00Scott, I agree situation resembles what you descri...Scott, I agree situation resembles what you describe in your second from last paragraph.sgt.red.blue.redhttps://www.blogger.com/profile/08132657702786638326noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-23975987841600837472014-12-07T10:58:22.423-08:002014-12-07T10:58:22.423-08:00re "the Fed wouldn't have to raise short ...re "the Fed wouldn't have to raise short rates very far to induce a flat to inverted yield curve."<br /><br />It all depends on how quickly and by how much the Fed raises rates. <br /><br />The current steepness of the yield curve assumes the Fed will raise rates in a gradual fashion and that eventually—in 3-5 years—the curve will become flatter. <br /><br />If the Fed were to raiseScott Grannishttps://www.blogger.com/profile/14028519647946868684noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-40310792594619811152014-12-07T10:49:11.792-08:002014-12-07T10:49:11.792-08:00Re "demand for money." It's easy to ...Re "demand for money." It's easy to get confused on this subject, so let me try to clear it up.<br /><br />The "demand for money" is not the same as the "demand for loans." In fact, it is precisely the opposite. <br /><br />When one has a strong demand for money, he or she wants to stockpile money, usually in the form of currency, bank savings deposits, T-bills Scott Grannishttps://www.blogger.com/profile/14028519647946868684noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-4866946369273806952014-12-06T17:48:03.083-08:002014-12-06T17:48:03.083-08:00Could you explain why the demand for money would d...Could you explain why the demand for money would decline with rising levels of confidence?<br /><br />The charts indicate an increasing amount of loans, which suggest to me a rising demand for money and confidence.<br /><br />BTW, thank-you very much for posting this information. It's very interesting. Appreciate the effort that goes into this blog.Andrewhttps://www.blogger.com/profile/01390035459036380103noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-51888161246881505152014-12-06T15:00:32.862-08:002014-12-06T15:00:32.862-08:00With worldwide economic softness, and low intermed...With worldwide economic softness, and low intermediate and long end interest rates, the Fed wouldn't have to raise short rates very far to induce a flat to inverted yield curve.sgt.red.blue.redhttps://www.blogger.com/profile/08132657702786638326noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-34277522864135443782014-12-05T21:00:40.958-08:002014-12-05T21:00:40.958-08:00Count me as deeply and vastly and completely incon...Count me as deeply and vastly and completely inconcerned about inflation.<br />1. Bring on boom times.<br />2. See global supply lines, competition and a deunionized work force ramp up supply with very low inflation.<br />3. Even if inflation reaches 3%, so what? Prosperity, not a subjective nominal price index, is what counts.<br /><br />I say to the Fed, "Pour it on!"Benjamin Colehttps://www.blogger.com/profile/14001038338873263877noreply@blogger.com