What credit crunch?
Credit crunch? What credit crunch?
By Brian Love
PARIS (Reuters) – The credit crunch is not nearly as severe as the
U.S. authorities appear to believe and public data actually suggest
world credit markets are functioning remarkably well, a report released
on Thursday says.
As a result, governments are pumping masses of public money into the
economy across the world because of the difficulties of a few big,
vocal banks and industries such as car manufacturing, which would be in
difficulty anyway, according to the report published by Celent, a
financial services consultancy.
"It’s just stabbing in the dark with trillions of dollars," Octavio
Marenzi, report author and head of Celent, told Reuters in a telephone
interview where he questioned the depth of the analysis that preceded
numerous fiscal stimulus packages.
The report, much of which is based on U.S. Federal Reserve data,
challenges a long list of assumptions one by one, arguing that there is
indeed a financial crisis but that, on aggregate, the problems of a few
are by no means those of the many when it comes to obtaining credit.
"It is startling that many of (Federal Reserve) Chairman (Ben)
Bernanke and (Treasury) Secretary (Henry) Paulson’s remarks are not
supported or are flatly contradicted by the data provided by the very
organizations they lead," said the report.
If I interpet both these pages correctly…the whole derivatives mess is mostly related to a few of the larger finance companies…including S&P and others who rated them…AIG and others who wrote insurance for them…and the investment houses who created, sold, and traded them?
Seems that these companies acted above and beyond the govt and it’s supposed regulators?
Which is why TARP exists and is keeping them afloat? Paulson is the front man for this group…a govt beyond the govt??
I found it interetsing that Bush has given a lot of the population their money back for them to spend – and read the other day that for the first time ever, the credit debt has gone down.
Proves the American people are a lot more intelligent that their politicians!
I recauul a latin phrase my teacher would drum into us in class: Quem deus vult perdere, dementat prius. This is an old Roman proverb meaning: "Whom the gods would destroy, they first make mad."
It seems to me that Bush is as mad as our own Gordon Brown, and as ineffectual. What is this telling us about our two countries?
…"American people are a lot more intelligent that their politicians!"