A friend of mine sent me this link yesterday to an article that published by Celent - they are a financial industry consulting organization owned by Oliver Wyman. The article cites statistics to shore up their arguement that there is not credit crisis. I also found a short critique of the report underlying the article that states that the lending is a result of borrowers tapping their existing credit lines. I'm not sure what to make of this. Any thoughts?
I've been wondering if conditions are more that people/businesses don't want to borrow money despite it being forced at them rather than the supposed lack of money available to be borrowed. I could go right out out today and get a car loan, max my HELOC, or run up thousands on my credit card if I chose to.
If lending institutions foresee hyperinflation, they will not want to lend now only to be paid back in near worthless currency later.
Of course there is no credit crisis. This is a DEBT CRISIS!
That's correct. It's a debt crisis...unpayable interest-bearing debt. There can be no end to the amount of money that can be created when all money is created as book entries on ledgers of a lender. They simply make a debit to a loan account and equal credit to a demand account and hand the borrower a receipt. When the borrower writes checks against the new numbers he puts new money into circulation that never existed before. When the principal is repaid it is uncreated. However, there will always be a constant and growing shortage of money to pay the total debt with because when all new money is created as loans there is no way to create the interest which must also be paid. The interest can only be paid in bankruptcy.
On 9 October 2008 the Federal Reserve Bank began paying interest to Banks for their statutory reserve deposits, clearing balances and excess balances.
In effect, these loans were as good as Treasuries in the sense they are "zero risk" for default.
Hence, Banks had an incentive to loan money to the Fed that they didn't have before 9 October.
If the authors of this report have taken this factor into account in their analysis of the apparent increase in commercial bank lending, then they probably got it right.
If they didn't take that factor into account, then they don't know what they are talking about, IMO.
With the ZIRP announced in December, the advantage to banks of loaning money to the Fed has virtually disappeared.
He doesn't understand what is in fact not a fraud although every man on the planet really wants to get yourself a bigger Manhood.
This skin doctor examined as well as authorized Ultrisse Eye Cream has actually been shown to tighten up saggy skin, fill penalty lines, and also remo
T-Volve supplement has 60 pills in it and as per printed on the tag one should consume two tablets of T-Volve twice in a day. Take one before going t
You will find plenty of muscle-building supplements today out available in the market.
Exoslim If you are working full-time, you should bring snacks to work to munch on. This helps you to resist the cravings of a long work day. What's wo