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Banks In Ninth District Blame Unwillingness To Lend On Obama Policies
The latest and most damning confirmation that it is none other than the president and his errant policies that are the primary cause for the credit crunch spreading among individuals and small and medium businesses like a paperborne version of the plague, comes direct from the Minneapolis Fed, where in a paper titled "Come and get it--please: Banks and credit unions say they have money to lend, but credit markets are still struggling for a variety of reasons" the Ninth Fed district puts the blame for the credit freeze flatly where it belongs: the president himself, and more specifically his destructive economic advisors. "The most-cited reasons—though only by a small margin—were
organizational uncertainty about future financial system reforms and
regulatory restrictions on bank lending. A Minnesota institution stated
flatly, “The regulatory environment has impacted our willingness to
make loans.” And stunningly enough, the desire by an ever-greater portion of Americans to forgo future credit and to splurge on idiotic purchases like iPods even as they no longer pay their mortgage and destroy their credit rating is having repercussions. "Said a South Dakota institution, 'We have money to lend, but cannot
always fund applicants due to inability to borrow. Their poor credit
histories keep them from obtaining credit.'" Who would have thunk that while Wall Street is immune from the causal relationship between action and reaction, and in fact blowing itself (and being rescued by taxpayers) up leads to infinite creditability by the US government, the opposite is absolutely not true, as Americans are now less able than ever to procure loans from these very same bailed out banks
Full Minneapolis Fed paper:
Come and get it--please
Banks and credit unions say they have money to lend, but credit markets are still struggling for a variety of reasons.
Ronald A. Wirtz - Editor, fedgazette
July 2010
As the weather has warmed in the Ninth District, credit conditions
have barely thawed, according to a recent poll of bank and credit union
executives in district states by the Federal Reserve Bank of
Minneapolis.
Financial institutions report that they have money to lend, thanks
to growing deposits. However, there’s not a lot of demand for loans and
other credit—a situation exacerbated by the fact that creditworthiness
continues to sag among businesses and consumers. Financial institutions
also continue to tighten their credit standards, with banks reporting a
decline in small business lending, in part, due to concerns about the
current and future regulatory environment.
Show me the money
There’s little doubt about the liquidity of financial institutions,
as 70 percent reported that insured deposits had increased over the
previous three months, while only 11 percent said they had declined.
But banks and credit unions reported that consumers and businesses
are not asking to put much of that available credit to work (see Charts 1 and 2).
Business borrowing appears to be mostly a wash, as fairly even numbers
said the volume of credit to business was higher (35 percent) and lower
(39 percent), and unchanged (26 percent) over the previous three
months; responses from the Dakotas and Wisconsin were more upbeat than
those from Minnesota and Montana. Consumer borrowing was markedly down;
50 percent of respondents said consumer borrowing had dropped, 29
percent saw an increase and the rest reported no change.
One Minnesota institution commented, “People are still saving more
than borrowing.” A Wisconsin credit union added, “We have an enormous
amount of liquidity to lend out to our members when they are confident
enough in the economy to start borrowing again.” Finally, a Montana
bank noted, “We have observed a trend that our best, most highly
qualified borrowers are choosing to not borrow.”
Tighter credit standards and poorer credit quality also explain some
of the lower demand for credit, according to those surveyed (see Chart 3).
Almost universally, credit standards have either tightened or remain unchanged from three months earlier (see Chart 4).
Among the responses, not a single institution said it had loosened
credit standards for business applicants, while just six of 307
institutions reported relaxing credit standards for consumers.
A Minnesota bank said it was “not seeing the opportunity to lend. When we do, we are much more stringent.”
Among various credit standards, collateral requirements and
documentation were most frequently tightened (by almost half of
respondents); about one quarter also tightened the size and number of
credit lines. The only standard that saw even the slightest loosening
was interest rates; the percentage of institutions that loosened
interest rates was slightly less than the proportion that tightened
them. In fact, significantly more Wisconsin institutions reported
loosening (32 percent) interest rates compared with tightening (19
percent), and about half left interest rates unchanged.
Small biz on the sidelines
Credit quality among business and consumer applicants continued to
deteriorate; only about 10 percent of respondents said that business or
consumer credit scores had risen, while about half said they had
declined for both groups. Said a South Dakota institution, “We have
money to lend, but cannot always fund applicants due to inability to
borrow. Their poor credit histories keep them from obtaining credit.”
The survey also asked specifically about credit conditions for small
business. Results showed that demand for small business loans and lines
of credit was mostly a wash across the district as a whole; those
institutions seeing an increase were offset by those seeing a decline.
However, responses were positive for every district state, save for
Minnesota, where responses were much more pessimistic.
Those reporting a decline in credit to small business were also
asked about the underlying source. The reasons cited for tight credit
were all over the map, including a decline in demand and sagging
creditworthiness among small businesses.
The most-cited reasons—though only by a small margin—were
organizational uncertainty about future financial system reforms and
regulatory restrictions on bank lending. A Minnesota institution stated
flatly, “The regulatory environment has impacted our willingness to
make loans.”
Not all respondents felt that way about the role of regulators,
however. The percentage of respondents saying regulator influence was
the most important factor for the decline in small business lending (27
percent) was slightly lower than those saying it had no role or
influence (29 percent).
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The credit bubble is gone. No more housing ATM, no more subsituting debt for income. Most americans are broke. They can not or will not borrow. It is all rather simple. Solvency, you know. Most of our banks are not solvent and the consumer... still trying to dig out from a mountain of debt while earning little to nothing.
Few doubt an investment banking cabal bent on world foreclosure took over.
Few knew Nathan Rothshild hired Karl Marx...
Including myself, thank you. The rabbit hole goes ever deeper. Not quite sure Marx was quite the bogeyman society deems him to be though after reading Fromm's work.
Karl Marx realized and expounded on some very important things related to labor and capital and the relationship between them.
It's unfortunate that he, Engels and others may have extrapolated some bad political ideas from those economic ideas.
But at the heart of it, he was a very smart man whose contribution to economics should be much more respected than it is in the U.S. (We don't have to agree with whatever politics might flow from his insights. Just understand that he had some good insights.)
"It's unfortunate that he, Engels and others may have extrapolated some bad political ideas from those economic ideas."
Yeah, like ultimately the individual who uses their skill and labor to aquire wealth only to find that under that system their wealth actually belongs to the state and not the individuals who earned and possess it.
And of then course, there is that minor inconvience of millions of dead bodies that needed to be buried.
The idea of communism can only work in small groups as it breeds apparatchiks like bunnies on viagra who add zero value to society in as far as production, outside of warehouses stuffed to the ceiling with regulations. In fact, I doubt very seriously they even know what regulations even reside in those warehouses, so they make up new ones as a "show" of productivity...LOL.
My opinion is the US has embarked on taking the worst from both fascism and communism. Where you have the state financially supporting some industry's and some people on the backs of the producers.
The producers are pissed.
Many, I mean many of us producers are pissed indeed!!!!!
"You stand in the midst of the greatest achievements of the greatest productive civilization and you wonder why it's crumbling around you....
http://www.capitalismmagazine.com/index.php?news=1826
I smell a revolution brewing...
http://www.investors.com/NewsAndAnalysis/Article/542171/201007301830/Wil...
Hopefully a peaceful transition back to sanity where the servants are controlled by the citizen instead of the servants running amok. I think there are quite a few vets here at ZH that would back me up that violent revolution is not desired.
We should hope for the best and a peaceful outcome. But the abuse of the taxpayer will end one way or another. Even if from no other reason than the inabilty to pay for our servants promises to other servants ;-)
http://www.youtube.com/watch?v=YwSZvHqf9qM&feature=avmsc2
When crazy making is the diplomacy of the day in Washington, and fraud, deceit, arrogance, and contempt oozes copiously from it's administrative body like a continual gleety discharge, it makes predicting America's response gripping.
nmewn, how is healthy diplomacy achieved when incongruity flows in the body of Washington like blood through their veins?
How do we get back to the basic purity of D of I, or the Constitution?
Do American's stop participating in the system?
Do American's vote them out, if possible?
Do American's violently overthrow or get overthrown?
Do American States secede?
Truly interesting times we are mired in. Where do you think we are headed?
"Where do you think we are headed?"
For a very long time poll after poll has sensed an increased anxiety level in the American public. Something didn't feel right they would say or allude to. They couldn't place a singular finger on it and say this is it, but they sensed it. It didn't matter if we were at war or peace, it stayed constant. Something was working at cross purposes, by design or flaw, to us.
One of the remarkable things that no one ever touches on is both left & right have identified the source of anxiety, in my opinion.
It is corrupt government.
When you have a congress critter who avoids paying taxes for years exposed and they wait two years to bring ethics charges because they don't need the trauma of truth, just his vote, you see it.
When you have insolvent banks paying out more in bonuses than they generated in profit you see it.
When you have secured bond holders have their rights abridged to curry political favor of the un-secured bond & stock holders by a "car czar" who is under investigation for taking kick backs for handing over pension fund investments to Wall Street crooks you see it.
When you have people massing in Washington DC protesting out of control spending & cronyism called racist you see it.
When you have protracted war instead of war based on winning you see it. What I mean is, if you are going to go to war you do it. You destroy your enemy violently, quickly, without mercy and you come home. You do not talk to them, you have decided on war, do it and come home.
When you have a state pass a law in order to bring the publics attention to the inaction of the federal government enforcing it's own law, the state's new law being almost identical in word to the federal law, and then the federal government brings a lawsuit to block the enforcement of the new state law, that again is identical to the federal law, you see it.
When you have government begin to write checks (Bush directly to individual citizens, Obama directly to state and local governments through "shovel ready stimulus") you see it again. What this says to me is we have over taxed you, but we cannot cut your taxes because we, the government and our hangers on, must survive in it's current form. So we will tax your unborn children for a little prosperity now. We will also give ourselves 10% raises as the public's reported unemployment rate goes to 10%. The public see's this and recognizes it for what it is. Bribery and theft.
The public education system has done an amazing job of churning out economic illiterates. Oh, most can balance a check book, but most of their critical thinking skills have been suppressed for a reason. They do not recognize the system is built on debt and it's service. They are given some arcane theory of where money and wealth ultimately comes from, some vague reference to printing and a weird wizard somewhere who arbitrarily raises or lowers the interest rate on money they borrow to buy things they cannot afford to pay for outright.
A rather long, rambling way of saying, we are going back. The public is imposing on itself, and by extension on all government, the catch word of the hour, austerity. But it's austerity in all things. They simply cannot force anyone to borrow at any rate if they don't wish to borrow. Yet another Keynesian epic fail just like in the 70's and the public will repudiate the debt foisted upon them.
The only way we see violent open rebellion, IMHO, is if the media and communications are shut down. This would be another in your face moment that even the government proxies in the media would not tolerate and is easily recognized by the masses for what it is.
"It is corrupt government"
21 Hear now this, O foolish people, and without understanding; which have eyes, and see not; which have ears, and hear not:
22 Fear ye not me? saith the LORD: will ye not tremble at my presence, which have placed the sand for the bound of the sea by a perpetual decree, that it cannot pass it: and though the waves thereof toss themselves, yet can they not prevail; though they roar, yet can they not pass over it?
23 But this people hath a revolting and a rebellious heart; they are revolted and gone.
24 Neither say they in their heart, Let us now fear the LORD our God, that giveth rain, both the former and the latter, in his season: he reserveth unto us the appointed weeks of the harvest.
25 Your iniquities have turned away these things, and your sins have withholden good things from you.
26 For among my people are found wicked men: they lay wait, as he that setteth snares; they set a trap, they catch men.
27 As a cage is full of birds, so are their houses full of deceit: therefore they are become great, and waxen rich.
28 They are waxen fat, they shine: yea, they overpass the deeds of the wicked: they judge not the cause, the cause of the fatherless, yet they prosper; and the right of the needy do they not judge.
29 Shall I not visit for these things? saith the LORD: shall not my soul be avenged on such a nation as this?
30 A wonderful and horrible thing is committed in the land;
30 The prophets prophesy falsely, and the priests bear rule by their means; and my people love to have it so: and what will ye do in the end thereof?
Jeremiah 5
King James Version
+++ nmewn
my trust in the system is null. their stats: bs. their re-assurances: bs. their word vs actions: bs.
and it is no accident.
disengage.
i wonder that the violent revolt might come as a *result* of the media/communications as likely as due to its shutdown.
the more they hammer Glenn Beck (yeah, i know, i know), the more certain i am they're not telling us what's really going on and/or what they're really trying to do. we're just sheeple, after all. we don't know what's good for us, etc.
these times are a new adventure, based on classical motifs.
The only way we see violent open rebellion, IMHO, is if the media and communications are shut down. This would be another in your face moment that even the government proxies in the media would not tolerate and is easily recognized by the masses for what it is.
Increasing "in your face moments".
Internet Control...
Subjugation of Private Enterprise Control...
Health Care Control...
Kagan Control...
Illegal Immigration Control...
One Bailout After Another Control...
Fairness Doctrine Control...
Etc...Etc...Etc...
It's as if all of this is going to coalesce into a defining moment. What will culminate this systematic "F**K you" to We The People...?
PS...re:"Tangled Up In Blue"....the whole "Blood On The Tracks" album reflects the depression Dylan was in. I liked the album, for the simple reason, at that time in my life, I could relate.
On a brighter note:
http://www.youtube.com/watch?v=PAbMazCRNso&feature=PlayList&p=343EF6DF4A...
+++
i've never seen so much audacity and 'in-your-face' activity as i see now.
they must be having a hellava time at those back-room meetings trying to figure out how to test our patience next...
just waiting for one dude to do something stupid so they can activate more emergency powers...
and do it some more.
disengage.
"the whole "Blood On The Tracks" album reflects the depression Dylan was in."
Man I could write a book on this topic, depression and other assorted "mental disorders". In my opinion fits of depression in an otherwise sound mind can be very enlightening. Just like fits of elation, no one ever says you need to go see a doctor because your too positive ;-)
I think way to much emphasis is put on crawling to a shrink and "having your mind made right". Show me a kid with ADD and then place him in front of a Playstation.
It's a miracle!!!
Instead we are told to give a young person, whose brain has not fully developed, mind altering drugs. Mmmkay.
Didn't mean to go off on a tangent there...no, yes I did...LOL.
SeeYa G
Nice. A more contemporary version of Francisco's speech.
I am not sure, there is any other kind of government, other than a corrupt one. No matter it's form. If not, how do we go about fixing, that which broke ours? This is the discussion we need to be having.
A person has to be willing to be educated and deprogrammed from self destructive ideas such as the ideas coming out of mainstream media and universities.
Media and education attempt to be the most powerful forms of mind programming today.The problem is that individuals lack authenticity or self actualized autonomy. Their images are shaped by other people's images. Commercial media, sports and universities attempt to provide identity for the lost. Unfortunately, those with weak identities appear to be a major voting block swayed by media adept in systematically destroying ideals that America was built upon.
Individual freedom and liberty appear not to be respected as much as a fantasized collective utopian mindset mainly.
This is what I call unreality. Look at the consequence of what the political establishment have created: Financial destitution. Now from where I come from ---what is making a problem, causing a problem, is the problem. Bad policy has come from corrupt politicians, who sold their souls for the benefit of themselves not the American people.
The question is....Are the American people honest enough within themselves to honor their autonomous freedom and vote on healthy principle (D of I/Constitution/Productive Creative Work/Rule of Law) vs. maligned images (Collectivism/Subjugation/Parasitism/Enslavement)? Unfortunately, many voting Americans appear to have no individual authentic identity. They will prostitute themselves to sociopathic images. Mexico is a good example of this.
All of the above, Grunt. There will be heads on pikes before this is through, figuratively or literally. Let's hope figuratively - but anything is possible. Truly interesting times.
"The Wall Street Journal's steadfast Dorothy Rabinowitz wrote that Barack Obama is "an alien in the White House."
Dorothy, I love you.............finally calling a Spade is a Spade.
The only way to STOP this man, is Impeachment, and we have grounds to do it,NOW.
He is failing to Uphold,Protect & Defend the Cosntitution to which he swore an oath.This Deriliction of Duty.
Failure to uphold the Oath, is an Impeachable offense.
Obama done fuck'd up again
The bamabots are junk happy.
Fuck 'em ;)
Tyler -
Brilliant use of split infinitive in the last sentence of your introduction:
Who would have thunk that while Wall Street is immune from the causal relationship between action and reaction, and in fact blowing itself (and being rescued by taxpayers) up leads to infinite creditability by the US government, the opposite is absolutely not true, as Americans are now less able than ever to procure loans from these very same bailed out banks.
Came down here to comment, and you had beaten me. To it.
I find it odd that every struggling small business owner thinks that they have a viable plan that is worth funding their operations. There's credit out there, but odds are no one is going to hand you money just because you have passion for your business.
Exactly. Many small businesses don't realize they have to have something valuable to pledge as loan collateral. In a lot of cases, that can be receivables factoring, productive assets, and personal property. The problems are: demand has cratered, assets are declining in values, and personal equity is negligible.
Even if the business owner had collateral, what would they want to invest in? Exporting is a fine idea, but where would a domestic manufacturer have a competitive advantage in a foreign market?
JP Morgan wouldn't give our little company a $100,000 line of credit (just a CYA on our part) without personal guarantees from the owners, even though we offered to let them freeze our savings account, which had over $100,000 in it, as collateral.
If that ain't pathetic, I don't know what is.
Bullshit. I know plenty of local, solid long term businesses with mint credit that cannot get loans for either expansion or restructuring. I am talking 20 to 30 year histories with solid assets, 10% growth / year, owners with 800+ personal credit scores. The loans they are offered are a freakin joke with outrageous interest and suck repayment terms.
Your small bidnez is what again?
Pretty tough to lend to the bankrupt foreclosed unemployed america! Better to just step up to the rigged stock market roulette wheel and lay your unemployment check and food stamps down on red!
That reminds me, whatever happened to the "ShoreBank" story. Obama friend, on the ropes, bailed out by blankfein and gang. Where did that story disappear to?
http://biggovernment.com/centralillinois912project/2010/05/20/shorebank-bailout-the-ties-that-bind
Same place as the 'arkancided' Washington DC madam.
Same place as OneUnitedBank, Bwaney Fwank, Maxine Water's and spouse.
How many times do people have to fucking say it? NO ONE WANTS TO BORROW. WE ARE NOT BENDING OVER TO PICK UP THE SOAP AFTER THAT LAST EPISODE. Stop already... we know your policies aren't working and, further, we know that you know that your policies aren't working. We are not going to hold your hand as you drive us off the cliff.
@MachoMan, about the best macroeconomic analysis Ive seen to date! We're simply not bending over to pick up the FED's soap anymore.
This is why QE 2.0 will not work. Businesses have cash and banks have excess reserves but it won't help. It'll be like pushing on a string. We will literely flush 100's of billions down the drain in an effort to like we're doing something productive.
It's not meant to work... it was never meant to work... it was only meant to bolster those cash reserves and transfers to principal corporate actors... the cash will be used to purchase leveraged assets when the flight to quality button gets tripped.
Yikes,
There is 2 Trillion on the sidelines, and NO business in their right mind is willing to add employee's or expand, add equipment.............
ONE reason, IF we do, HOW bad are we going to get screwed?.
Not knowing/having a clue what your cost's of operating are going to be be.......they flat out are not going to PUT it on lthe line.
Hey, when you know your going to get fudgepacked, if your normal, you avoid it.
Americans (individuals) and families millions have money to spend, but are not FOR THE SAME reasons...............
This is keeping the Economy in the Dippy Dumpster.
Precisely! That's why, when I started my biz 5 years ago, I decided that I would not utilize debt financing in any way. Although things have gone flat this year, my biz owes no debt, its assets are mine and not pledged to some asshole who created money out of thin air in exchange for it. F-ers.
Love how you put it! LOL! Says it all right there.
I am no fan of Obama. I do not believe that the administration is doing anything to help. That said... I don't think there is really anything that they can do to help. Credit is crashing because that is what happens at some point when an economy can no longer carry the debt load. This has been trying to happen for a long time. I think the "blame Obama game" is purely political. The rhetorical pendeluum will shortly swing the other way, but whoever holds office next will make the same decisions that have been made for decades in support of our current economic structure. Either that or we will be starting over (which is what I vote for... but I don't have a vote).
Obama = Hoover
Petreus = FDR
Both = Hitler?
FDR = Obama
Obama = Hitler
therefore
FDR = Hitler
as seen on the Gilda Beck show coming yto straight to the USA from Australia, courstey of Rapist Murderdoc.
My mission - should I choose to accept it: Finding a ZH article without a Nazi reference in the comment section.
Rotsa ruck with that, mate.
You think the "blame Obama game" is purely political? It IS purely political. It's the banks refusal to lend. Oh sure they say they will lend but they don't. They're just hoarding cash right now like Corporate America is doing, waiting for that rainy day or another crash to come along. Helicopter Ben and the Fed are utterly useless, they don't have a fricking clue. The bankers in the Ninth District can go to hell. Useless idiots. Let's see who's willing to play the blame game when the next crash comes along soon.
Don't blame Obama. It was the un-elected officials who got us to where we are. And don't think a regime change will change anything. Unless we can elect a president who will make good on a promise to cut the size of US govt (at all levels) by 50%, it will be SSDD until judgement day.
Typical, the white guys run the ship into an iceberg, then put a black man at the helm. Wasn't me!
......no,no,no he's half black. The boyz made sure they covered the other side of the trade in the remote possibility he may save the sinking ship. They would then be positioned to give all the credit to his white half.
Rain,
No he's not HALF Caucasoid,,,,,,,,,,,,,,,,,,,he's a MONGREL.
Sheeeeeeeeeeesh........:>)
"Typical, the white guys run the ship into an iceberg, then put a black man at the helm."
LOL...there it is...been waitin for that one...the ultimate black nationalist conspiracy...yes, everyone was in on it (99% of black voters, the orientals, latinos, fawning liberal press etc.) everyone, except Haaahvaaahd educated Barry apparently...ROTFL.
That was good, thanks, you've reinforced my theory that discrimination & bigotry are not color blind ;-)
Team Obama entire political process is about blame. He blames everyone and everything except his corrupt ideas. Barrack does nothing for anyone or anything that did not directly give him money. No campaign donation no access. Without tax dollars to pay for votes and pay for donations he has no process of governing. He believes in nothing.
Barrack Obama only cares about money. Period. Nothing else. Name one thing he has proposed that did not include a massive redistribution of wealth. He never talks about how this Nation has great people with great ideas. He splits the camps to get money. He talks of race and color but the only color he ever sees is green.
krid,
Surely you jest?...where have you been?.
"I think the "blame Obama game" is purely political"
All his policies have been planned to systematically deconstruct the Capitalist system of America.
His JOB, is to bring us to 3rd world status..........the AGENDA.
IF Obama ever leaves the White House, whoever replaces him, and the same goes for the COngres in November, are screwed............they are going to inherit a DISASTER.
I'm probaly the the only one who has something good to say about a bank. My Chase card was always there when I need it. Unlike inlaws and parents, Chase never said no. Make your payments on time and they Leave you alone. I thank Chase for always being there when I needed them. In return, I pay on time and make sure it's at least 5 times the minimum payment. For those who hate banks, Cut up your card and don't look back.
See my post above about JPMorgan Chase. I hope they rot in hell.
soooo, if you own a chase credit card and a citi credit card which one would you get rid of?
Both
Actually to Blano and screwball...great choice...but, but the question was...oh fuck it...i know...
Both.
And now you have no credit cards...which also is not the point...the question was to choose...maybe you too many choices...some of us don't...the moral high ground is great when the belly is full...so make the choice
I'm sure they are hated, But they were there when my Charcoal Canaster fell off my car while driving. They saved the day.
Do what?
Whaddafuggaday talkgin'habout?
plo,
There are other cards that you can get that would have saved the day.........
Fk Chase, and Citi, and any other company that has taken a quart of OUR BLOOD.!!!!!!!!!
plocequ,
Here's YET one more reason to DUMP the sons of Satan.
http://www.washingtontimes.com/news/2010/jul/28/omb-nominee-got-900000-after-citigroup-bailout/
Grandpa's old tractor sputtering again... Usury fails because it always eventually eats actual productive classes... Maybe it wasn't so much a "religious" thing why many religions don't like interest, maybe its a "history" thing that they remember all such usury systems eventually eat themselves... The design of an interest based unit of exchange predates all such actors on the stage we have before us. http://en.wikipedia.org/wiki/Lombard_banking
Next stop for granpa's sputtering tractor with the smiling robot on top: upheaval. Its the design stupid. Physics and Mathematics obsoletes scape goats oh, btw...
Obama is the figurehead to focus all frustration on - he is not the cause, nor is he the solution, just the well compensated "face". . .
ahhh, would that be Citibank, who moved to South Dakota for the "favourable" banking rules that allow them to bypass usury laws in most other states. . .
so Citibank can't find more people to steal from?
diddums.
If he be the face, hows comes we feels its ours gettin' sat upon?
because you still "imagine" him in your life?
he's not, you know. . . he's never heard of you, nor does he care. . . he doesn't make the rules, nor write the speeches, he just reads 'em. . . there's zero you can do about the course he / the world is taking, except:
dis-engage.
Precisely!
ca,
bingo. you win.
When Obama and his team stop blaming others then I will stop blaming them.
obama is more of a religion than a person - look at all his worshippers
all worshippers have figureheads - obama is no different, nor palin's crowds, nor ron paul's - if you seek to be led, you'll find a leader to fall in line behind.
self-fulfilling.
if you cant discern the difference, and believe they are "all the same," you are a worshipper. big difference between following and worshipping.
lol, prove me wrong. tell me who will "change the world" next.
I worship no thing.
Cath,
"tell me who will "change the world" next"
You have a PRIME example of a WORLD CHANGER in place NOW.
How will/have the policies this mans administraion, AFFECTED your world, and YOUR future?.
If you say it hasn't/won't, you are clueless.
Anyone interested in taking a step, albeit very small, to get something off the drawing board?
I've been thinking about a sticker, bumper size, that identifies American Patriots. I think that includes a large majority of the ZH community. But wouldn't directly identify said patriot as a member of ZH.
Personally, I'd like to be driving down the road and give a thumbs up to the person next to me. It's a start.
keep it simple, but identify two main themes - "patriot" (someone who cares and understands what is happening in this country) and one other word. A word that tells the oligarchy that we are on to them (I could use some help here). I'm thinking of some reverse psyops like, "dumb" perhaps. Dumb Patriot. Dumb may not be the word, but "they" do consider us as some form of dumb.
I use the the avatar "Village Idiot" because it acknowledges right up front that I may be, and sometimes am, the VI. But you can't use it against me because I am the VI, after all. We both know. That is the key - one word that represents the power of the people, and another word that signifies a mutual understanding that, to the contrary, we aren't dumb.
I need a little help developing this, though, but hopefully you get the idea. I would be privileged to contribute any way I can, financially or otherwise.
I hope this idea gets some traction - I really would like to be running down the road and give a big thumbs up to my fellow Dumb? Patriot.
I'll probably post this around the site and see what happens. Cheers.
EDIT: "Oligarchy" may not be the defining word or group that is taking us down, for you. Feel free to replace with something else.
How about "Dead Mules"?
As in, stop beating the farm animal that makes the economy work.
I've had something similar on my truck for over a year now.
"The beatings will continue until the moral improves"
It's a Florida thing, complete with skull and crossbones...LOL. Some get it, others don't ;-)
Statewide - promising. Thanks for responding.
"How about "Dead Mules"?"
To the point, might need a little polishing. Thanks for respondng.
"Robot Fighting League"
Perhaps plutocracy is a more appropriate word.
Sure.
FUFRN
"FUFRN"
LOL - would definitely work around here.
Those stickers are available now! They're distributed by:
Get yours today!
North Dakota looks stable. Maybe the Obama administration should take a closer look at their financial and economic policies.
with a population just over half a million, an economy based in agriculture, with petroleum recently being developed, median household income of about $35,000 and the only state with a state owned bank (which might be helpful to the local farmers), it would appear to be doing well. . .
be nice to emultate the state owned bank model, hmm. . .
be nice to emultate the state owned bank model, hmm.
Yes a good bank model, state owned and backed. Wish this would catch on in other states.
The state owned bank that now gets all of the student loans. This bank is the bank that the law was written for. Corruption by and for Pelosi, Reid, and Obama. FUCK THIS BANK
I don't know where you get your info but it is flawed.
Due to federal legislation, Bank of North Dakota can no longer offer new FFELP loans.
BND is no longer allowed to participate in the Federal Family Education Loan Program after July 1, 2010. This means that any Federal Stafford, PLUS or Grad Plus loans you may need must come from the federal government directly through your school.
Rick,
Yep, another Obamaite Democrat sold HIS VOTE, for this, and got Bent over and Loaded up............and lost the deal.
Just like Bart Stupidpak...............an EO does NOT trump Congressional Legislation.Not worth the paper and ink it was written on, and HE sold out HIS VOTE, his country, and HIS constituencey.............
Lies, Liars, and Damned LIARS
I guess some people don't like you pointing out that the ND model would be hard to duplicate some places.
I've been working in ND for eight months doing oil and gas title research and tend to agree that their system - which predates the great depression and has deep roots here - would be difficult to transplant. They have some unique circumstances up here.
By the way, oil has been big business in ND since the 1950s, though the Bakken formation that's being developed now dwarfs previous finds. I hope that the influx of royalties and lease bonuses gets used wisely by the people and the State (the State owns a nice chunk of the mineral rights) as these payments won't continue indefinitely.
The BND has been responsible in other areas of development before they had the oil revenue. No doubt the oil revenue has helped them, but rather than have the oil corporations take advantage of them they are benefiting as it should be. The huge advantage the state has by owning its own bank is that they don't need to lend from commercial banks with interest rates. They can loan to themselves at no interest or very low interest rates. No FDIC fees because the state backs the deposits. Of course having a state owned bank isn't in itself foolproof, you still have to act responsible with the money and in the state interest of improving the state economy. They have no shortfall in their 2010 state budget, and made 58M profit at BND in 2009.
Farmers have adapted their practices to the nature of the country. They have concentrated on wheat, other small grains, and cattle--natural products for a cool, subhumid grassland. They have steadily enlarged their farms, from an average of 271 acres in 1880 to 676 in 1955. More and more they have adopted practices to conserve soil and water and to check the damage of wind and drought. In the good times since 1942 they have rapidly built up financial reserves to protect themselves against future reverses. By the end of 1945 North Dakotans owned $398,000,000 worth of government bonds and had bank deposits of $425,000,000. In 1958 they had bank deposits of $696,000,000 and the state itself holds reserves in various special funds of almost $140,000,000 in cash and securities.
Now the banks want to weep that theyre not loaning? Remember now the banks themselves have much more stringent standards! Youre not getting a loan unless you have spotless history and money down, and no one can meet it! So cry on, bailed out banks, and join the depression party! Maybe have to let go 1 Porsche and 1 mistress and her dwelling you support, oh well!
Sheep,
Bro/Sister................
"Remember now the banks themselves have much more stringent standards! Youre not getting a loan unless you have spotless history and money down, and no one can meet it! "
This is NOT QUITE true, depends on your ethnicity.................now,who's the Racists?
And in final for today- Dont forget this collapse is INTENTIONAL! Theres no 'Huh, gee I wonder why people arent borrowin, we're surprised', its an intentional collapse to usher in NAU!
Reserves should be sopped up to the extent there is no demand. Problems of the past relate to excess reserves and the banking systems inability to judge good credit. The banks are as guilty for the poor credit ratings as the individuals.....after all they did (or did not do) the original credit underwriting of all that is wrong with the system today. The standards they had in the past were really like having no standards at all. Kind of a self serving puff piece of "don't blame me".
There are broadly two kinds of people: those who are over their heads in debt, and those that aren't. The former can't service the loans they have, the latter don't want more debt. In short, people aren't borrowing because they are behaving rationally (for a change). This drives economists insane.
This drives Keynesian economists insane.
But on further thought, how rational were they to begin with?
+1
I know one person who opened a new restaurant and had no problem getting a loan. And I know several people who had no problem getting a new mortgage or refinancing. If you have good credit and maybe some cash you still can get a loan. What has disappeared is the pool of subprime borrowers. Without them, we have way too many banks with way too much money to loan.
I hope banks understand that they are in an uncertain regulatory environment right now, because for twenty years they were taking advantage of a nonregulatory environment and drove their own industry into a ditch.
So now people are talking about how to re-regulate your industry. Don't want the government to stick it's grubby fingers into your industry? Then demonstrate that you can take care of it yourself. You failed that test.
And no one is telling you not to loan to some small businessman. You know how to assess credit-worthiness. So don't blame your loaning decisions on the government.
Until we can fruitfully segregate each financial institution into separate parts based upon function/service provided, they will continue to operate with impunity. Effectively, the outcome of their livelihood is certain and has a limited lifespan. They know this, we know this, the government knows this. They have made the conscious decision that by striking down all attempts at meaningful segregation, they are able to feed at the trough longer, and siphon more of our money through the organization to their personal accounts and/or controlled entities. In other words, they do not care what the repercussions are on the back side, they are letting it ride... they do not care if by thwarting all efforts, they incite reactionary regulation overstepping the boundaries of decent governance. It's a simple business decision and, if I were in their shoes, I would do the same.
You all make it sound so complicated. Let me in the words of Jerry Garcia "ease your worried mind" and simplify it for you. First: the government would agree it's "gone after the banks." It would if it could be honest with you agree "that is why you can't get a loan." Which leads us to the simple truth that "we are the government and we will be your bank" which of course is exactly what it's been doing for 30 plus years--only more "directly" now by standing by pretty much every mortgage now issued. Needless to say the banks while not complaining are stating simply "it's not enough." The government in the meantime is SCREAMING "IT NEVER IS FOR YOU PHUCKERS!!!" and the bankers are responding "no need to yell, man. no need to yell." In the meantime "you the ZH'er" are "Waiting for Godot" in the form of a loan and wannabe Masters of Universe (where ever they reside in the age of the internet) are being told by their current masters "can u value that banky thing over there. I'm still convinced it's worthless but its stock price keeps rising."
First of all, the only folks to NOT ask about this are the banks. Duh.
Second, no one has even bothered to research the role of the Feds in lending during the 1930s. Obama is behind this, all right: by the fearful toadying of his corrupt minions, the Feds are failing to either analyze the situation or even begin to identify proven policy remedies that one can find in any history book. Namely, badged and armed agents with backup in every large bank in the US, reviewing lending policies and naming new executives. You all should read the 'Shut Michigan' article in the Time Magazine online archive for a tasty example--all the rich families in private meetings with the agents that flew in, new banks with new boards, all that kinda thing. Some of today's bank history pages proudly relate their founding by RFC agents in the 1930s.
Obama, he's no FDR (despite the peewee glee club's droolings, BO is more in the Hoover camp in reality--yes that is a tad jocular, but just a tad). But then again, it did take about three years to figure out how bad it really was after October 1929, so give it a year or so more. Just sad that these SOBs can't be bothered to learn anything. Delusional. Incalculable damage done to Main Street by a three year thumb-in-ass pause for more looting in DC/NY. Wheeeeeee....thud.
Nobody does any primary research, just opines out of their pieholes. This, in the economic equivalent of war. I guess we deserve to go down. But some of us will keep trying....to use some critical thinking and data and most of all neutral perspective.
Thanks to ZH for the zone of questioning that is this site. As the old sign says, God Bless This Mess....
http://www.time.com/time/magazine/article/0,9171,745428,00.html
"Wheeeeeee....thud."
+1
I award you the Burger King crown-of-the-day, and an extra order of onion rings!
"Incalculable damage done to Main Street by a three year thumb-in-ass pause for more looting in DC/NY."
24ct. Jim...someone get's it.
I doubt that there are many entities that need to borrow money because they have a backlog of good orders that they can't fill with existing capacity and need to ramp.
Those that need to borrow money want it to make payroll.
Now there's a loan you want to make.
Good point--ammunition manufacturers don't need a loan when they're using inbound cash to hire a third shift at the factory.
The banks blew their capital +. One of the signs I anticipate of coming hyperinflation will be when the banks do start lending - pumping money into the system multiplied by a factor of the fractional reserve requirement as each subsequent deposit makes its way into the real economy.
rlouis,
BINGO...
Deflation first, then Mt.Vesuvius................once the cash hits the streets, Buh Bye.
bulding the same non-efficient homes, buying the same non-efficient cars and appliances, como'n no bank will lend you and they should not lend...why to buy an new efficien car? to pay more taxes and insurance? and so on, policies, policies and policies for ever.
System broken. Nuff sed.
Occupant at 1600 Pennsylvania shall from this day forward be known as:
"His Holiness, Our Supreme Leader"
People aren't borrowing because the leverage is just not as attractive. Not that hard to figure out. I'm a direct CRE investor and the ratios/rates are frankly crap, and I have a 13 year perfect payment track record with incredibly vanilla properties (stuff like ground leases on garbage dumps) and plenty of cash on hand. Not worth the time and effort in many cases. Blaming Obama or "consumer saving" or whatever else is merely obfuscating the point, which is that putting down 20-35% on a property is a lot less profitable and tax friendly than putting down 5-10%. It's simple math. So, blame math.
BINGO! All the leverage is in banks borrowing at ZIRP and earning 2.9? % on Treasuries, the classic carry trade that Japan used for 20+ years with the Fed's blessing. If there is no "cash flow" in the economy, why borrow when you can'r earn enough to service your incurred debt? The banks know it and the people who know cash flow business know it and only the uninformed are complaining, hence the personal guarantees, PGs being required by the banks. With no PGs, you are back to liars loans, etc.
The big problem is the increased costs to business of more than 40 employees for mandated healthcare and 3.4% tax on everything sold for "healthcare". You can dodge the tax bullet for healthcare in business by going C Corp for the deduction, but then you have a lot of filing which cash businesses don't find "attractive".
Link to Faber interview on BNN.ca
http://watch.bnn.ca/market-morning/july-2010/market-morning-july-23-2010...
Now we get the smug wankers who think they know something about business models saying 'only those that don't need loans are asking for them.' That, dear denizens of the Interwebz, is a steaming load. Speculative investors can stop, sure. Fortune 500 biggies can, with luck, pull in their horns and nurse cash flow to survive, often smugly, but at -20-30% previous capex.
Small business that actually grew and hired? D-E-A-D. Why? Because over the past 30 years, the model changed. It became ultra normal to use short term capital markets for operating expenses, eg payroll, and use cash flow for financing and expansion. Even big guys used commercial paper, eg credit, for operating costs...that's why a parade of 'whining losers' like Honda and American Electric Power had to go begging Treasury to expand the commercial paper support programs to cover AA+ hosebags like them, how pathetic...no, dumbkopfs, how NORMAL.
The idea that you finance operating expenses out of the cash in your shoebox became so outdated as to be laughable.
Now that there's a systemic crisis and oligarchs are desperately looting you and your babies' precious savings to survive, all of a sudden 'only losers need loans'?
Grow the fuck up. 30 years of status quo has been blown away in the last 30 months. Try not to be so smug as you crawl up the learning curve. A lot of good companies are dying. And every day it gets worse, not better, because people are seemingly incapable of basic analysis or perspective.
Have a nice weekend.
enjoy your stuff, jim
it seems like we're going from credit-cards back to cash, or worse, lay-away...
that said, it occurs to me that in the short-term business world (what, two decades now since Glass-Steagall gutted?), to compete with high-risk idiots, you sometimes have to become one too - e.g. the BofA prez saying something to the effect of "when everyone is dancing you have to dance too". this decision made at your own peril.
kind of like today's equities market for any manager seeking to even match the rising market performance at large. sux when it breaks, but clearly sux telling your customers why you're nervously sitting on the sidelines of a broken system, not performing as well as the index(s)...
if you are responsible, you can't compete in their market and last - ergo, you have to close shop well before the risk taker's "chickens come home to roost".
of course we can all rely upon the bush/obama/??? crew to happily 'invest' *our futures* chasing those damned chickens away.
Finally, someone puts the BLAME exactly on the MAIN A**HOLE..........I rest my case.
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