“The only thing we have to fear is fear itself.”
Just as in the 1930s the Fed fueled deflation by not making credit available, today the opposite seems to be the case – low rates are fueling deflation and preventing markets from clearing.
There is no free lunch. Either we kill growth via financial repression of savers or we embrace the painful process of debt restructuring for the major industrial nations.
Q3 earnings for financials show that the interest rate risk created by the Fed after years of zero rates is very real indeed
Are we all wealthier because the Dow is at ~ 15,000? Should Katee Sackhoff be the next Fed Chairman?
So are you going to be among the few, the proud, the surprised Sell Side analysts?
When we actually start the Q3 earnings cycle for financials, watch for the word “surprise” in a lot of news reports and analyst opinions
Investors need to stop listening to the happy talk coming from the economists, and start focusing on what banks and other lenders are saying and doing operationally to adjust for the mortgage market of 2014 and beyond.
A dozen years have passed. Memory doesn't fade. In some ways, the events remain as vivid today as they were that September morning.
Ian Buruma: “The truth can be brutal, and makes life uncomfortable. So one looks the other way.”
Not only does FNM seem to be unprofitable under the new FHFA guidance, but payments made to Treasury might need to be reversed.
"We have documented significant fiscal losses caused by preferential treatment of bank creditors of gone concern banks..."
We need to think about lessening the economic “skin-in-the-game” for RMBS and focusing anew on enforcing US securities laws...
Banks are NOT looking to hang onto REO property. Read Basel III. 150% risk weight for distressed...
By pursuing QE too long, the FOMC has engineered a repeat of the periods of market losses and negative accrual that nearly crushed the banking industry in the 1970s and 1980s, only worse.