tag:blogger.com,1999:blog-6616959642391988608.post4774084230003963386..comments2024-03-28T00:18:25.641-07:00Comments on Calafia Beach Pundit: Fed tightening is the real issue, not taperingScott Grannishttp://www.blogger.com/profile/14028519647946868684noreply@blogger.comBlogger10125tag:blogger.com,1999:blog-6616959642391988608.post-35565859072724354102013-09-24T19:03:52.786-07:002013-09-24T19:03:52.786-07:00Certainly after all of these years, it must leave ...Certainly after all of these years, it must leave you wanting, yes wanting to known why the FBS continues with it's worthless QEs...<br /><br />The program is not an accident but designed to advance certain interests..<br /><br />Despite the M2 money chart and the fact of no inflation, those that think we shall escape this Fed malfeasance unfettered are badly misinformed and in for a rude Hanshttps://www.blogger.com/profile/05183141792723754273noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-19042976346860485462013-09-24T09:31:16.421-07:002013-09-24T09:31:16.421-07:00Roy: Re banks' willingness to lend. Yes, many ...Roy: Re banks' willingness to lend. Yes, many banks have had to boost their capital ratios, and that has contributed to their desire to hold reserves. But the larger story is that both banks and the public are still quite risk averse. Banks are reluctant to lend, except to the Fed; the public is reluctant to borrow. The world's desire to deleverage is still strong, because the world is Scott Grannishttps://www.blogger.com/profile/14028519647946868684noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-45607610958105165592013-09-24T09:30:27.230-07:002013-09-24T09:30:27.230-07:00Agreed. Excellent work. Thank you Scott for so ge...Agreed. Excellent work. Thank you Scott for so generously taking the time to share and teach. <br /><br />I've been studying your work for quite some time now and wish to use it indefinitely as I watch the economy.<br /><br />Incidentally, it was a Claremont graduate (Robert Bise, retired) who taught at Orange Coast College and sparked my change in major to economics.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-65648226044186075542013-09-24T08:53:16.865-07:002013-09-24T08:53:16.865-07:00WOW!! What a piece. Thanks.WOW!! What a piece. Thanks.NormanBhttps://www.blogger.com/profile/05986709079442388236noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-32354469917044561102013-09-24T04:56:02.299-07:002013-09-24T04:56:02.299-07:00tell the markets that tapering is a "nonevent...tell the markets that tapering is a "nonevent". perception is everything and the markets perceive that an end to tapering is a beginning to tightening and that is a very big deal. this will not end well.stevehttps://www.blogger.com/profile/07387986994469835875noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-87376992044633520162013-09-24T00:06:46.822-07:002013-09-24T00:06:46.822-07:00Some people, and perhaps Scott Grannis, seem to as...Some people, and perhaps Scott Grannis, seem to assume that people who sold bonds to the Fed put the money in the bank.<br /><br />There is no evidence of this, and the "rational man" argument would suggest another scenario.<br /><br />If I own a Treasury note, I have liquidity (active market on any business day) and no credit risk, and some yield.<br /><br />If I sell the Treasury Benjamin Colehttps://www.blogger.com/profile/14001038338873263877noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-17146512453402134512013-09-23T21:37:04.096-07:002013-09-23T21:37:04.096-07:00Scott,
A question, if I may.
You write that the ...Scott,<br /><br />A question, if I may.<br /><br />You write that the big incentive for banks to hold on the reserves and not to loan out is the 0.25% they receive now (is my understanding correct?)<br /><br />Now, there are farther conditions which I'm sure you are familiar with so it would be interesting to hear why you have not mentioned them:<br /><br />For example, the reserves ratio is Royhttps://www.blogger.com/profile/09325498485905547125noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-37473666588625889432013-09-23T19:36:37.482-07:002013-09-23T19:36:37.482-07:00This comment has been removed by the author.McKibbinUSAhttps://www.blogger.com/profile/10545798495680527622noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-8249764071764443232013-09-23T17:07:44.709-07:002013-09-23T17:07:44.709-07:00“Many expected the tapering to begin this month, b...“Many expected the tapering to begin this month, but now the guessing is that it may start next month or in December.”<br /><br />Exiting from QE has no “road map“. <br /><br />However, we can, with much certainty state, that it will be a “road map” of politico notional propositions and much less about economics.W.E. Heasleyhttps://www.blogger.com/profile/00368333904571061995noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-69488851160917612702013-09-23T17:06:44.031-07:002013-09-23T17:06:44.031-07:00You write, It's almost a non event. And you w...You write, It's almost a non event. And you write Banks now have an incentive to hold reserves, whereas before they had a disincentive to hold reserves.<br /><br /><br />I respond Banks, that is the Too Big To Fail Banks, and the Regional Banks, KRE, have been the engine of QE. Currently the Too Big To Fail Banks, RWW, are trading 2%, and the Regional Banks, KRE, are trading 7%, below their theyenguyhttps://www.blogger.com/profile/08515095308836729043noreply@blogger.com