tag:blogger.com,1999:blog-6616959642391988608.post3108626695486706821..comments2024-03-28T00:18:25.641-07:00Comments on Calafia Beach Pundit: Business lending is boomingScott Grannishttp://www.blogger.com/profile/14028519647946868684noreply@blogger.comBlogger13125tag:blogger.com,1999:blog-6616959642391988608.post-15637217527191520362015-04-23T12:54:26.488-07:002015-04-23T12:54:26.488-07:00Scott,
Thank you.
I am beginning to think that a r...Scott,<br />Thank you.<br />I am beginning to think that a rebound in bank lending will be a catalyst for a second wind in the U.S. economy. Or bank lending may allow the Fed to "pass the baton" to the private sector.<br />Thanks again for the response.<br />RobRobhttps://www.blogger.com/profile/09231609837924848907noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-15583389057342179242015-04-18T09:47:17.547-07:002015-04-18T09:47:17.547-07:00Rob, re credit creation: Credit creation can come ...Rob, re credit creation: Credit creation can come from individuals, businesses, and banks. But when an individual or a business lends money to someone else, that doesn't expand the money supply, it just shifts existing money from one person to another. When banks make loans, however, they do create new money. So I pay a lot of attention to bank lending, and I generally look at C&I Loans Scott Grannishttps://www.blogger.com/profile/14028519647946868684noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-64683803712933723622015-04-17T09:06:20.140-07:002015-04-17T09:06:20.140-07:00Scott,
Thanks for the data on commercial lending. ...Scott,<br />Thanks for the data on commercial lending. What other sources of credit creation are important for domestic demand? I realize that private equity has been booming (esp. credit-related PE), and direct corporate issuance has also been strong. I don't know if this covers non-bank lending, but it seems close.<br /><br />It isn't easy to get comprehensive data on credit creation, Robhttps://www.blogger.com/profile/09231609837924848907noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-24169186754641400942015-04-13T17:08:47.717-07:002015-04-13T17:08:47.717-07:00Who does not regard the Federal Reserve as part of...Who does not regard the Federal Reserve as part of the federal government?Benjamin Colehttps://www.blogger.com/profile/14001038338873263877noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-60375192634606636742015-04-13T16:59:54.711-07:002015-04-13T16:59:54.711-07:00Scott: you may wish to look at the New York Fed we...Scott: you may wish to look at the New York Fed website and their explanation of portfolio rebalancing on the part of people who sold Treasuries to the Fed.Benjamin Colehttps://www.blogger.com/profile/14001038338873263877noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-34577598018517608312015-04-13T11:08:49.944-07:002015-04-13T11:08:49.944-07:00Correction: as of March 31, 2015, the Fed held $2....Correction: as of March 31, 2015, the Fed held $2.46 trillion of Treasury notes and bonds.Scott Grannishttps://www.blogger.com/profile/14028519647946868684noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-85053383373943126712015-04-13T11:06:29.579-07:002015-04-13T11:06:29.579-07:00The Fed currently holds $2.35 trillion of Treasury...The Fed currently holds $2.35 trillion of Treasury notes and bonds, and $1.73 trillion of MBS. The Fed is not considered to be part of the government, so its holdings of Treasuries are part of the debt outstanding held by the public.<br /><br />As I've explained a number of times, the Fed, via its QE program, has effectively "transmogrified" $2.5 trillion of Treasury debt into Scott Grannishttps://www.blogger.com/profile/14028519647946868684noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-47489051027922440932015-04-12T18:48:16.748-07:002015-04-12T18:48:16.748-07:00Scott: The roughly $3 trillion in Treasuries held ...Scott: The roughly $3 trillion in Treasuries held by the Fed---that pot is seperate from the $5 billion you mention owned by the federal government. But the Fed is part of federal government too. Comment?Benjamin Colehttps://www.blogger.com/profile/14001038338873263877noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-23119671397873196372015-04-12T11:57:49.721-07:002015-04-12T11:57:49.721-07:00Re: debt concerns. To begin with, our national deb...Re: debt concerns. To begin with, our national debt outstanding is only $13.1 trillion. $5 trillion of the $18 trillion commonly cited is debt the government owes itself, so it really doesn't count—it's just an accounting fiction. What matters is the debt we owe to others, and that is $13.1 trillion. It's a little over 70% of GDP. That's a lot, but it is not a catastrophic number.Scott Grannishttps://www.blogger.com/profile/14028519647946868684noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-27379048456638620382015-04-12T00:53:56.488-07:002015-04-12T00:53:56.488-07:00This comment has been removed by the author.Anonymoushttps://www.blogger.com/profile/08668672497416082279noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-906081422565200522015-04-12T00:53:56.016-07:002015-04-12T00:53:56.016-07:00This comment has been removed by the author.Anonymoushttps://www.blogger.com/profile/08668672497416082279noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-43797913909284791382015-04-12T00:53:55.333-07:002015-04-12T00:53:55.333-07:00Scott,
Do you have any concern about the $18 tril...Scott,<br /><br />Do you have any concern about the $18 trillion in US debt and a potential currency crisis looming in the not too distant future? Will the US continue to absorb more debt or do you think there is a plan to pay it back?<br /><br />Thanks,<br /><br />DaveAnonymoushttps://www.blogger.com/profile/08668672497416082279noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-73561766887876377162015-04-11T17:35:52.813-07:002015-04-11T17:35:52.813-07:00Love the C & I lending. I suspect the rebound ...Love the C & I lending. I suspect the rebound in commercial property values has allowed banks to extend loans to such borrowers. Banks like to lend on collateral.<br />Still, I would prefer the Fed error on the side of too much stimulus rather than too little.Benjamin Colehttps://www.blogger.com/profile/14001038338873263877noreply@blogger.com