Consumer credit went up 5B in February
- Thread starter Topspin
- Start date
Socrtease
Verified User
But people collectivly became FIVE BILLION dollars MORE in debt. That doesn't sound dry to me. Sounds stupit. But a relatively wet stupit.
Well, that's because you lack the proper context and instead defer to inappropriate speeding and flood analogies.
Drying up doesn't mean bone fucking dry no one can get a dime of credit anywhere. It means that, compared to historical rates, credit is difficult to obtain.
Here's a link to the FED consumer credit figures:
http://www.federalreserve.gov/releases/g19/hist/cc_hist_sa.html
Look at the trend. If you can find me a month where outstanding credit decreased from the previous month since the end of WWII I'd be surprised.
EDIT: Reviewing the data there are a few months associated with recessionary periods.
Last edited:
Socrtease
Verified User
Dec 45 to Jan 46 ha!
Here is a really interesting article that explains a little bit about the run on the banks (which is what really put us into a depression in the 30’s, far more than the stock market crash, according to what I have read), the lack of available funds for banks to borrow, and what the fed has had to do in a desperate attempt to keep liquidity in our markets. No one yet knows if it was enough…I mean, other than the geniuses posting here.
WASHINGTON (MarketWatch) -- Acting quickly to prevent a run on major global financial firms, the Federal Reserve cut its discount rate by a quarter percentage point to 3.25% and offered to lend money to a longer list of firms than ever before.
The extraordinary weekend moves came as J.P. Morgan Chase sealed a deal to buy Bear Stearns Cos for just $2 a share backed by up to $30 billion borrowed from the Fed. The Fed board gave its approval to that unique funding arrangement, which guarantees JP Morgan against losses from buying Bear for just $2 a share backed by up to $30 billion borrowed from the Fed. The Fed board gave its approval to that unique funding arrangement, which guarantees JP Morgan against losses from buying Bear. See full story.
The Fed board also approved the creation of a special lending facility through the New York Fed that would be available to members of its primary dealers list, which includes both commercial banks and investment banks. Investment banks, such as Bear Stearns, have not been allowed to borrow directly from the Fed.
JP Morgan has access to the discount window through its Chase Bank subsidiary, but Bear Stearns does not have direct access.
Events have unfolded at warp speed over the past week. On Tuesday, the Fed announced a new lending program for primary dealers in the bond markets, but that program won't go into effect for two more weeks. On Friday, the Fed allowed Bear Stearns to borrow money via JP Morgan in a desperate bid to save the firm, which has been pummeled by losses on exotic securities backed by subprime mortgages.
The Federal Open Market Committee meets on Tuesday. Analysts expect the FOMC to cut the target for the federal funds rate by as much as a full percentage point to 2%. Another cut in the discount rate is also likely.
The new lending program would operate for at least six months, and would offer loans for as long as 90 days, rather than 30 days under the regular discount window. Loans from the new program would be backed by a "broad range of investment-grade debt securities," the Fed said. The interest rate would be the same as the discount rate.
"The Federal Reserve, in close consultation with the Treasury, is working to promote liquid, well-functioning financial markets, which are essential for economic growth," said Fed Chairman Ben Bernanke, in a statement. "These steps will provide financial institutions with greater assurance of access to funds."
Robert Brusca, chief economist at FAO Economics, said the new lending facility created a general way to help other dealers.
"The Fed has more information now that it has seen what Bear Stearns had on its books," Brusca said in an interview.
President Bush will meet with Bernanke, Treasury Secretary Henry Paulson and Securities and Exchange Commission Chairman Chris Cox on Monday at 2 p.m. Eastenr.
Earlier on Sunday, Paulson went on television to project an image of confidence in the U.S. financial market. He said Washington would do what it takes to foster stability on Wall Street. See full story.
Dean Baker, the co-director of the Center for Economic and Policy Research, criticized the Fed's "real turn to secrecy" in the new auction facilities.
The Fed does not reveal the names of firms that borrow funds in the auctions. The purpose was to get around the "stigma" of banks that didn't want to borrow at the discount window because of the questions it would raise about its balance sheet.
But, in an interview, Baker said "now is not the time to shut the doors and keep everything in the dark."
Baker said he sensed a whiff of panic at the Fed and in the Treasury Department.
"The main thing is that they [Fed and Treasury] are really really scared. Telling us that everything is great is an insult to intelligence. They should own up to it and talk seriously to people," Baker said.
Peter Morici, a professor of economics at University of Maryland, criticized the Fed for not imposing meaningful conditions on the financial institutions that it is providing cash.
As a result, banks continue to impose onerous conditions on their innocent customers, he said.
"Today's moves by the Federal Reserve are the desperate acts of failing men," he said.
Below is a list of primary dealers who will be able to borrow directly from the Fed's new program announced Sunday:
BNP Paribas Securities Corp.
Banc of America Securities LLC
Barclays Capital Inc.
Bear, Stearns & Co., Inc.
Cantor Fitzgerald & Co.
Citigroup Global Markets Inc.
Countrywide Securities Corporation
Credit Suisse Securities (USA) LLC
Daiwa Securities America Inc.
Deutsche Bank Securities Inc.
Dresdner Kleinwort Wasserstein Securities LLC.
Goldman, Sachs & Co.
Greenwich Capital Markets, Inc.
HSBC Securities (USA) Inc.
J. P. Morgan Securities Inc.
Lehman Brothers Inc.
Merrill Lynch Government Securities Inc.
Mizuho Securities USA Inc.
Morgan Stanley & Co. Incorporated
UBS Securities LLC.
http://www.marketwatch.com/news/sto...7-8377-55F05D859B76}&print=true&dist=printTop
WASHINGTON (MarketWatch) -- Acting quickly to prevent a run on major global financial firms, the Federal Reserve cut its discount rate by a quarter percentage point to 3.25% and offered to lend money to a longer list of firms than ever before.
The extraordinary weekend moves came as J.P. Morgan Chase sealed a deal to buy Bear Stearns Cos for just $2 a share backed by up to $30 billion borrowed from the Fed. The Fed board gave its approval to that unique funding arrangement, which guarantees JP Morgan against losses from buying Bear for just $2 a share backed by up to $30 billion borrowed from the Fed. The Fed board gave its approval to that unique funding arrangement, which guarantees JP Morgan against losses from buying Bear. See full story.
The Fed board also approved the creation of a special lending facility through the New York Fed that would be available to members of its primary dealers list, which includes both commercial banks and investment banks. Investment banks, such as Bear Stearns, have not been allowed to borrow directly from the Fed.
JP Morgan has access to the discount window through its Chase Bank subsidiary, but Bear Stearns does not have direct access.
Events have unfolded at warp speed over the past week. On Tuesday, the Fed announced a new lending program for primary dealers in the bond markets, but that program won't go into effect for two more weeks. On Friday, the Fed allowed Bear Stearns to borrow money via JP Morgan in a desperate bid to save the firm, which has been pummeled by losses on exotic securities backed by subprime mortgages.
The Federal Open Market Committee meets on Tuesday. Analysts expect the FOMC to cut the target for the federal funds rate by as much as a full percentage point to 2%. Another cut in the discount rate is also likely.
The new lending program would operate for at least six months, and would offer loans for as long as 90 days, rather than 30 days under the regular discount window. Loans from the new program would be backed by a "broad range of investment-grade debt securities," the Fed said. The interest rate would be the same as the discount rate.
"The Federal Reserve, in close consultation with the Treasury, is working to promote liquid, well-functioning financial markets, which are essential for economic growth," said Fed Chairman Ben Bernanke, in a statement. "These steps will provide financial institutions with greater assurance of access to funds."
Robert Brusca, chief economist at FAO Economics, said the new lending facility created a general way to help other dealers.
"The Fed has more information now that it has seen what Bear Stearns had on its books," Brusca said in an interview.
President Bush will meet with Bernanke, Treasury Secretary Henry Paulson and Securities and Exchange Commission Chairman Chris Cox on Monday at 2 p.m. Eastenr.
Earlier on Sunday, Paulson went on television to project an image of confidence in the U.S. financial market. He said Washington would do what it takes to foster stability on Wall Street. See full story.
Dean Baker, the co-director of the Center for Economic and Policy Research, criticized the Fed's "real turn to secrecy" in the new auction facilities.
The Fed does not reveal the names of firms that borrow funds in the auctions. The purpose was to get around the "stigma" of banks that didn't want to borrow at the discount window because of the questions it would raise about its balance sheet.
But, in an interview, Baker said "now is not the time to shut the doors and keep everything in the dark."
Baker said he sensed a whiff of panic at the Fed and in the Treasury Department.
"The main thing is that they [Fed and Treasury] are really really scared. Telling us that everything is great is an insult to intelligence. They should own up to it and talk seriously to people," Baker said.
Peter Morici, a professor of economics at University of Maryland, criticized the Fed for not imposing meaningful conditions on the financial institutions that it is providing cash.
As a result, banks continue to impose onerous conditions on their innocent customers, he said.
"Today's moves by the Federal Reserve are the desperate acts of failing men," he said.
Below is a list of primary dealers who will be able to borrow directly from the Fed's new program announced Sunday:
BNP Paribas Securities Corp.
Banc of America Securities LLC
Barclays Capital Inc.
Bear, Stearns & Co., Inc.
Cantor Fitzgerald & Co.
Citigroup Global Markets Inc.
Countrywide Securities Corporation
Credit Suisse Securities (USA) LLC
Daiwa Securities America Inc.
Deutsche Bank Securities Inc.
Dresdner Kleinwort Wasserstein Securities LLC.
Goldman, Sachs & Co.
Greenwich Capital Markets, Inc.
HSBC Securities (USA) Inc.
J. P. Morgan Securities Inc.
Lehman Brothers Inc.
Merrill Lynch Government Securities Inc.
Mizuho Securities USA Inc.
Morgan Stanley & Co. Incorporated
UBS Securities LLC.
http://www.marketwatch.com/news/sto...7-8377-55F05D859B76}&print=true&dist=printTop
You win the prize, but the point remains the same.
There are some additional dates in the 70's, 80's and early 90's.
And I'll still be able to tell you that your analogy is silly and you may want to relocate.
This was no little correction Soc. This could have brought us to our knees, don’t you understand? The economy would come to a complete stand still. I am not talking about a stock market crash, like Top is praying for (for whatever reason), but rather, there would be no liquidity, and that would mean no available cash for businesses at all. It would mean the most severe recession we have seen in our lifetimes. According to economists crossing party lines – it could mean a depression. They had to do it. There was no choice.
Cancel 2016.2
The Almighty
After reading this thread I think we should focus on who has access to the increased amount of funds.
To those with poor credit ratings, the vast majority of credit is indeed shrinking. Credit cards are about the only ones that haven't been reducing credit to subprime individuals and businesses because they know they can continue jacking rates up to cover the future losses.
To those with good credit, lenders are begging them to take out loans as they are in desperate need for more quality on their books. So for this group, credit is increasing.
Overall, yes, the credit is increasing. But not for those that borrowed more than they could afford and are subsequently struggling for it.
Frankly Top, I have learned that nothing is over my head, no less way over it.
I just finished a GRANDE honey latte. It was delish. good thing my bf likes big asses. Did you know that most young guys do? For some reason it's you old guys who like the boyish butts.
Silly or not, it illustrates that something that is increasing is not "drying up". So you can call it silly all you want, it is relevent.
Socrtease
Verified User
I am 42 years old and I love a big ass. Last GF had a 24 inch waist and 42 inch hips. GF now has 40 or 42 inch hips. Love J-Lo and Beyonce, thought Shakira's hips were on fire before she became an American singing idol then someone told her she had to have teenage boy hips. Not all old men like hipless freaks.
I just turned 39...I don't think that you're old. I was just busting on Topper who likes boy-shaped women. Don't know what he does with them, don't want to know.
uscitizen
Villified User
Hey another step forward in understanding where our country is.
I only fear for others.
Darla, pay attention to the "economic" experts when they are being interviewed. They are trying so desperatly to be positive.
The only ones that might talk openly are university types not linked to the investment game.
What will all those out of work finiancial experts do ?
uscitizen
Villified User
I was talking to a farmer that owns a chain fo retail stores. A freind of his has a new house and had a mortgage of 2,800/mo. ( big house), anyway his payment just jumped to 8K/mo. The owner ? is in the real estate business, so should have known better one would think. Experts ? Phooey.
Annie
Not So Junior Member
I know that I've been paying off my credit quick as I can, though I've never dug a deep hole. In the fall my hearing aids put me in the hole about 5k, they are now paid for. Updating my kitchen a bit, but that too is nearly paid for.
Now if I could get my kids to stop hitting me up with IOU's in the $Xk's, that would be great.
I'm moving my money around, though moving out of gold and more into investing. Funny thing about the 'acknowledgment' of recession, by the time that comes, it's nearly over. That's a guess, but with nearly a half century experience and some studying to back it up.
Now if I could get my kids to stop hitting me up with IOU's in the $Xk's, that would be great.
I'm moving my money around, though moving out of gold and more into investing. Funny thing about the 'acknowledgment' of recession, by the time that comes, it's nearly over. That's a guess, but with nearly a half century experience and some studying to back it up.
Annie
Not So Junior Member
I live in a mixed housing development, (townhomes/single family), in rather wealthy Chicago suburb. A year and a half ago, my townhome was appraised at $288k. Last month I received a solicitation from a realtor quoting similar property sales: $240k. In the past month there have been 8 home for sale signs posted, 6 of them have sold. All over $240k. 4 weeks or less on the market doesn't seem bad to me. If my home were to sell for $200k, it'd be great for me. I've been here 10 years, paid $130k. Put down $35k. I've a 25 year fixed, with accelerated payments.