An economics, investment, trading and policy blog with a focus on Modern Monetary Theory (MMT). We seek the truth, avoid the mainstream and are virulently anti-neoliberalism.
Fed might have to boost QE! Or MMTers might prescribe more deficit spending offset fall in credit. Load moar treasuries onto bank balance sheets, that'll fix Maxine Waters and AOCs regulatory failures. We're at the point where incompetence and bankster derangement ideology starts to undermine mmt.
You have to wonder how much of current inventory problems are due to this credit contraction leaving distributors/dealers under financed... probably at least part of it...
Also data week ending April 21 which I think does NOT include the big 40b capital raise.... I think JPM went first and raised capital on the 22nd... others followed next few days...
So have to see if that additional capital can turn this trend in credit asset creation around or was just enough to get them back to minimum compliance post Reserve/UST exemptions which expired on March 31...
40b capital buys what ~700b in balance sheet space but divs and buybacks take some back? That sets us up for an interesting July when TGA supposed to be at 200b again and then what? September taper maybe slows purchases by a few billion per month
A banker is a fellow who lends you his umbrella when the sun is shining, but wants it back the minute it begins to rain. attributed to Mark Twain
A sound banker, alas, is not one who foresees danger and avoids it, but one who, when he is ruined, is ruined in a conventional and orthodox way with his fellows, so that no-one can really blame him. J M Keynes
Not that we should give a hoot about bankers except our one and only payment system, apart from mere coins and paper Central Bank Notes, works through those government-privileged usurers.
In the meantime, fintechs eat the banks lunch and take customers for loans and deposits while the Dems take campaign donations from said fintechs, bullshit their progressive supporters that they are onto Banksters, all the while AOC and Maxine gets stinking rich while causing unregulated, uninsured, unregulated institutions to take deposits and make loans to people of color at usurious rates and when they blow up the economy, they'll call out Bill Black to prosecute the mess and sweep their corruption under the rug. Ahhh. A time honored tradition.
“ 40b capital buys what ~700b in balance sheet space”
They were below their internal thresholds taking advantage of the temporary suspension... so that might have just been enough to get themselves back into internal compliance post suspension...
It’s not that there isn’t growth the balance in down 100Bs from its previous high under current regulatory policies...
They could also securitize loans and sell them to reduce loan assets...
But the point here is that incompetent uneducated leftist losers are going all around having you believe that this industry is under regulated and then somehow unfairly benefiting all the time when it is in significant regulatory decline ....
12 comments:
Fed might have to boost QE! Or MMTers might prescribe more deficit spending offset fall in credit. Load moar treasuries onto bank balance sheets, that'll fix Maxine Waters and AOCs regulatory failures. We're at the point where incompetence and bankster derangement ideology starts to undermine mmt.
You have to wonder how much of current inventory problems are due to this credit contraction leaving distributors/dealers under financed... probably at least part of it...
Also data week ending April 21 which I think does NOT include the big 40b capital raise.... I think JPM went first and raised capital on the 22nd... others followed next few days...
So have to see if that additional capital can turn this trend in credit asset creation around or was just enough to get them back to minimum compliance post Reserve/UST exemptions which expired on March 31...
40b capital buys what ~700b in balance sheet space but divs and buybacks take some back? That sets us up for an interesting July when TGA supposed to be at 200b again and then what? September taper maybe slows purchases by a few billion per month
A banker is a fellow who lends you his umbrella when the sun is shining, but wants it back the minute it begins to rain. attributed to Mark Twain
A sound banker, alas, is not one who foresees danger and avoids it, but one who, when he is ruined, is ruined in a conventional and orthodox way with his fellows, so that no-one can really blame him. J M Keynes
Not that we should give a hoot about bankers except our one and only payment system, apart from mere coins and paper Central Bank Notes, works through those government-privileged usurers.
In the meantime, fintechs eat the banks lunch and take customers for loans and deposits while the Dems take campaign donations from said fintechs, bullshit their progressive supporters that they are onto Banksters, all the while AOC and Maxine gets stinking rich while causing unregulated, uninsured, unregulated institutions to take deposits and make loans to people of color at usurious rates and when they blow up the economy, they'll call out Bill Black to prosecute the mess and sweep their corruption under the rug. Ahhh. A time honored tradition.
And don’t forget the cryptos that is the Wild West too...
“ 40b capital buys what ~700b in balance sheet space”
They were below their internal thresholds taking advantage of the temporary suspension... so that might have just been enough to get themselves back into internal compliance post suspension...
https://www.globenewswire.com/news-release/2021/04/07/2205792/0/en/Coinme-Launches-300-Bitcoin-Enabled-Coinstar-Kiosks-in-Florida.html
Wah- hoooo!!!
“Hey y’all I’m goin’ down Walmart and git me some dem bitcoins!”
Could it be that all the stimulus went to paying back debt and so that's why loan growth isn't there?
It’s not that there isn’t growth the balance in down 100Bs from its previous high under current regulatory policies...
They could also securitize loans and sell them to reduce loan assets...
But the point here is that incompetent uneducated leftist losers are going all around having you believe that this industry is under regulated and then somehow unfairly benefiting all the time when it is in significant regulatory decline ....
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