C’mon man. You’ve got to start doing better here. The drop in lending is fictitious – it’s the transfer of SVB loan assets out of the bank reporting system and into the FDIC balance sheet. This isn’t rocket science. You’re letting your bias show through in your analysis. Be more objective.
paperboy
1 year ago
I don’t know. I have all kinds of outfits offering credit cards, personal and heloc loans with terms and rates that are still low or nonexistent. So I use their money to pay bills, invest my money and roll the costs over when due or pay them off after collecting my returns
KidHorn
1 year ago
This should be expected with higher rates. More likely for borrowers to not be able to afford the payments.
Maximus_Minimus
1 year ago
The chart at the top is the NY FED survey of consumer expectations. Gee, is this just another phone based survey calling idle homemakers?
One would expect the NY FED to know how to survey it’s member banks about credit conditions.
They do. It’s a different survey. There’s a survey of chief credit officers that’s also out there.
HippyDippy
1 year ago
The real problem isn’t the FED. The real problem is that if you were to ask the average person about the FED’s actions, they would just look at you in complete bafflement. If people would just pick up a damn book every now and then, we wouldn’t be in this mess. But they insist on remaining ignorant slaves. And so, here we are at the end of this civilization. Going down with an entitled attitude. Good riddance!
The FED’s Ph.Ds. don’t know a debit from a credit, a bank from a nonbank. The money stock was misclassified (overstated) by MSBs between 1913 and 1980. The correspondent balances of the S&Ls and CUs have been misclassified (overstated) since 1980. The DIDMCA turned the thrifts into banks in 1980 and then included their liabilities in the money stock, but not their assets in commercial bank credit. O/N RRPs are misclassified.
Large CDs should be included in the money stock, etc.
These are not misclassifications, but instead are part of the overall fraud that is the FED. Central banking is the greatest threat we face. Next to the willful ignorance of the people. It was born in darkness for a reason.
I disagree that “central banking” is the greatest threat. I would agree that bank-created money is the greatest threat. If the central banks vanished overnight, we would still have government forcing us at gunpoint to use dollars that can only be obtained by borrowing them from a private bank. And because the bank-created dollars are extinguished upon repayment, there is never enough money in existence to pay off all the debt principal plus interest. This means the unpayable debt bondage to the money creators is perpetual.
The solutions to the problem must include 1) abolishing bank-created money, 2) zeroing-out all bank debt (“debt jubilee” of all business, personal, and government loans), 3) abolish the requirement to pay taxes with bank-created money, and 4) Transition the outstanding money supply of approximately $22 trillion to an interest-free money system.
The ignorance of the people isn’t willful. They have been processed through specially designed brainwashing programs since they were born.
Bank created money is a hallmark of central banking. Also, I went through the same indoctrination centers as all the willfully ignorant. I picked up books. The devil only tempts you. He never makes you.
And you see nothing wrong with that? Do you actually like being so pathetically powerless? That’s what I got out of what you just wrote. You seem to prefer it being out of your control.
Salmo Trutta
1 year ago
The
distributed lag effect, the 2-year rate-of-change in money flows, the volume
and velocity of our means-of-payment money, the
proxy for inflation, has been sharply decelerating for some time. The U.S.
should be down to normal inflation rates by the 4th quarter of this year.
Check out the Cleveland fed trimmed mean CPI. Annualized level this month at 2.6%, which isn’t bad. It bounces around a bit, but given that each successive high (and low) has been lower than the last, if the trend holds then you’ve got a decent chance of being correct.
8dots
1 year ago
DEI ==> DUI.
8dots
1 year ago
If my bank lend me $100 I will be NPL in one day. If my bank gets in troubles the Fed will bail it out, using other depositors money U & U the tax payers money as collateral and pile debt on U & U and your children to save my bank, because my bank is a DEI bank, a politically connected bank. My bank is more important than SIFI banks. That’s how the system work for decades. Bail in is for the nerds. // The number of FDIC insured banks shrank from 14K to 4K since 1983. Banks total assets are trending up almost uninterrupted, with few minor dents during recessions. Banks assets peaked last month at $23T. The Apr dent might be a backbone. Forget about these three bailed out banks. No harm was done. The climate change banks have never been safer. The banks are in good hands U & U can trust.
Perplexed Pete
1 year ago
Credit = new money created out of thin air by privately-owned bank.
The
distributed lag effect, the 2-year rate-of-change in money flows, the volume
and velocity of our means-of-payment money, the
proxy for inflation, has been sharply decelerating for some time. The U.S.
should be down to normal inflation rates by the 4th quarter of this year.