quantitative easing

Site? Oh, cite!

Well, google "Clinton deregulation 1992" and stuff like that.

You'll find stuff like...

"Yet Bill Clinton, elected in large part because of that recession (a la James Carville's "It's the economy, stupid"), was talking about deregulation before he was even inaugurated. The National Review reported that "Bill Clinton embraced at least one Reaganesque idea at the Little Rock economic summit" he held in December 1992: "banking deregulation." "

John

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Chasing the fool banks is just a show, no real prosecution will result.

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It took additional deregulation besides repealing Glass-Steagall.

We'll see. It looks like real money to me.

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Yes, it's real money for Goldman Sachs. The government is buying QE bonds through Goldman Sachs which gets a good commission. Goldman should make out on the deal.

-Bill

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Different issue. ...not that it isn't a real problem. Kickstarting the economy by throwing napalm on inflation is just such a wonderful idea.

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So, why are commodities falling if inflation is rising as they did yesterday when the market lost 178 points? Oil and gold went down big time. I would have thought oil would rise as the dollar fell, but I was wrong.

-Bill

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Be careful about laying a straightedge on two points and extrapolating it into a trend.

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China's talking about slowing their economy, which would tamp demand for commodities, hence the weakness in price.

-- Cheers, James Arthur

We're doomed:

--James

Kinda looks that way. What idiots.

John

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Oil is up 2.2% today. Crazy market. I was listening to Moe Ansari today explain how wise investors should have taken advantage of the correction and bought stuff on sale if they had any brains. Too bad he doesn't tell us these things a day before the correction instead of a day later.

-Bill

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A number of factors interact, i.e. the value of the dollar, our economy, local demand, global economic growth, forecasts, etc. So, it's entirely possible for both the dollar and the euro to be falling and commodities too, if demand is falling and we're debasing our currency, which it might be and we are, respectively.

Of course you can follow all those and disentangle them--it's lucrative--but it's boring. Kind of like keeping up with celebrity gossip...lots of short-term intrigue, emotion, and drama.

-- Cheers, James Arthur

Te banks are sitting on billions in deposits, refusing to lend it out. They appear to be waiting for a more favorable regulatory environment before opening the bank vault.

The economy can take a certain amount of money supply expansion. It can come from the private sector (banks writing loans) or the public sector (quantitative easing).

Now that the House of Representatives is back in the hands of the business and bank freindly GOP, banks figure that they'll get the regulatory relief they want over the course of the next few years. Had the Democrats hung on, odds are the banks would have said, "Screw it. This is as good as it will ever get. We might as well start lending today."

The Fed is playing chicken with the banks. If they won't make loans, the Fed will (in a manner of speaking) and consume the economy's capacity to absorb an increase in the money supply. The right wing talking heads are screaming about all the evil that the gov't is doing. But its exactly the evil that the banks want to do (write loans and grow the money supply).

Simple solution: The banks should either shit or get off the pot.

No, they're worried about more defaults dragging them under. They'll rent money at the Fed's 0% to make sure that doesn't happen.

One creates wealth, one destroys it.

Nonsense. They have no interest in going under. As long as the economy is stagnant and money is free they'll sit on it as insurance.

Complete nonsense.

...and go under. Nice.

Banks want to make money, and they are competitive. If they aren't lending, it's because the environment isn't right. If lending was profitable, they'd do it.

John

Specifically, it has to be MORE profitable (counting risk) than anything else they can legally do with the money (such as buying bonds).

Best regards, Spehro Pefhany

Right. And by "the environment" I mean the regulatory environment. They are waiting for the new House to reverse regulations put in place since

I don't think so. Banks were more heavily regulated from 1933 to 1999, and they leant money.

John