tag:blogger.com,1999:blog-6616959642391988608.post881208472664454862..comments2024-03-28T00:18:25.641-07:00Comments on Calafia Beach Pundit: Bank lending continues to increaseScott Grannishttp://www.blogger.com/profile/14028519647946868684noreply@blogger.comBlogger14125tag:blogger.com,1999:blog-6616959642391988608.post-33668440060629545942011-08-29T10:17:14.771-07:002011-08-29T10:17:14.771-07:00Mr. Grannis,
In the modern monetary system banks ...Mr. Grannis,<br /><br />In the modern monetary system banks do not lend reserves. They are only lending constrained by a) capital requirements b) willingness to lend and c) demand for new funds by creditworthy borrowers. So the increase in reserves will not someday be "lent out," as the neoclassical money multiplier theory would suggest. See recent papers by the BIS and NY Fed for Chad Starliperhttps://www.blogger.com/profile/15544750889918998447noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-19717183568772646232011-08-29T09:42:38.943-07:002011-08-29T09:42:38.943-07:00This commodity index seems very subdued.
http://u...This commodity index seems very subdued.<br /><br />http://uneasymoney.files.wordpress.com/2011/08/dj-ubs.jpgBenjamin Colehttps://www.blogger.com/profile/14001038338873263877noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-41687122482839130392011-08-29T09:38:05.466-07:002011-08-29T09:38:05.466-07:00The 3-yr average of the CPI (0.95%) is at its most...The 3-yr average of the CPI (0.95%) is at its most misleading right now because of its starting point. Assuming only a 0.2% rise in the monthly CPI going forward, the 3-yr rate will rebound to 2.5% by December.Scott Grannishttps://www.blogger.com/profile/14028519647946868684noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-66970089430527042822011-08-29T09:25:51.339-07:002011-08-29T09:25:51.339-07:00Dr. Perry (carpe diem) has excellent post showing ...Dr. Perry (carpe diem) has excellent post showing inflation is lower than it has been for the last 54 years.<br /><br />But let's fight inflation!Benjamin Colehttps://www.blogger.com/profile/14001038338873263877noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-37810497379709112772011-08-29T00:13:52.224-07:002011-08-29T00:13:52.224-07:00Why is this good news? Banks lending more money th...Why is this good news? Banks lending more money they've created from the void is a good thing? <br /><br />And risk aversion was a secondary consequence of the bust following the artificial housing boom, not a cause.<br /><br />People should be risk-averse right now, the economy is about to head over a cliff. Why is it a good thing in your opinion that people are acting more risky?<br /><br /Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-67405002326469211812011-08-28T12:33:57.360-07:002011-08-28T12:33:57.360-07:00Be good if some VCs could pick up the lending slac...Be good if some VCs could pick up the lending slack.<br /><br />Despite Dodd-Frank, banks are making money. <br />http://www.marketwatch.com/story/problem-banks-grow-in-the-first-quarter-fdic-says-2011-05-24Johnhttps://www.blogger.com/profile/06365403570563730880noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-72367330843809229362011-08-28T10:47:46.638-07:002011-08-28T10:47:46.638-07:00I wonder how this chart would have looked without ...I wonder how this chart would have looked without Dodd–Frank.Billhttps://www.blogger.com/profile/05145490918994594519noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-23642249542562041382011-08-28T10:44:52.514-07:002011-08-28T10:44:52.514-07:00Bill,
I think your banker friend has a point. Reg...Bill,<br /><br />I think your banker friend has a point. Regulators have been on the warpath with banks and other private sector participants for nearly three years. IMO unless this is curtailed and some confidence is restored, we will be fortunate to avoid another recession, much less restore normal growth rates. There needs to be a complete and final settlement between the government and the Johnhttps://www.blogger.com/profile/11652253509768573561noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-20116677968755169152011-08-28T08:25:47.327-07:002011-08-28T08:25:47.327-07:00I spoke with a senior credit officer at a bank her...I spoke with a senior credit officer at a bank here in Atlanta and he said there is barely any improvement in loan activity. He said the federal regulators have made it almost impossible for his bank to issue new loans.Billhttps://www.blogger.com/profile/06910619601367464068noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-67248773206640375502011-08-28T07:05:45.587-07:002011-08-28T07:05:45.587-07:00I bet if you corrected for inflation, that chart w...I bet if you corrected for inflation, that chart would look a lot uglier since 2008.Johnhttps://www.blogger.com/profile/06365403570563730880noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-82778679113239225982011-08-28T05:28:40.513-07:002011-08-28T05:28:40.513-07:00"a coming". you've gone over the ed..."a coming". you've gone over the edgeseptizoniomhttps://www.blogger.com/profile/14253705209662419429noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-84308749095581186552011-08-27T12:00:23.293-07:002011-08-27T12:00:23.293-07:00Is the chart corrected for inflation?Is the chart corrected for inflation?Johnhttps://www.blogger.com/profile/06365403570563730880noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-40662890773853979132011-08-26T19:58:10.418-07:002011-08-26T19:58:10.418-07:00Rather feeble increase. Perhaps the Fed should st...Rather feeble increase. Perhaps the Fed should stop paying interest on reserves. Then banks would be under some pressure to start lending again. <br /><br />Sweden has had great success with a nominal GDP targeting program. They implemented a QE at 25 percent of GDP, vs. just 15 percent for the USA.<br /><br />They are over their recession. <br /><br />We are suffering in the USA for the sake Benjamin Colehttps://www.blogger.com/profile/14001038338873263877noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-19265672790352904252011-08-26T18:44:00.465-07:002011-08-26T18:44:00.465-07:00Given the artificial economic growth the U. S. ex...Given the artificial economic growth the U. S. experienced during the credit bubble years, this is probably all the business loans that are qualified and justified.<br /><br />It will be along time (years) before the banks will exceed their previous record high for such loans.Williamhttps://www.blogger.com/profile/04418491109912775561noreply@blogger.com