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Is The Fed Still Fabricating Loan Creation Data? Bank Of America Would Like To Know
Just under a year ago, when looking at aggregate loan creation by America's banks, we stumbled upon something strange: there was a massive discrepancy between what the Fed, in its weekly call reports, said was weekly US loan issuance - which the then bulls gloatingly announced was rising and thus a confirmation of US growth - and what the actual banks reported.
This is what we reported:
One of the more bullish "fundamental" theses discussed in recent weeks, perhaps as an offset to the documented record collapse in mortgage origination - because without debt creation by commercial banks one can kiss this, or any recovery, goodbye - has been the so-called surge in loans and leases as reported weekly by the Fed in its H.8 statement. Some, such as the chief strategist of retail brokerage Charles Schwab, Liz Ann Sonders, went so far as to note that this is, to her, the "most important chart in the world."
[S]ince the Fed's data is sourced by the banks themselves, what the Fed is representing and what the banks report quarterly should be in rough alignment. Unfortunately it isn't.
As the chart [above] shows, in the first quarter, of the Big 4 banks, only Wells Fargo reported an increase - a tiny $4 billion to be exact - in its loans and leases portfolio. All the other banks... saw a decline in their loans and leases holdings.
Our question then: "is the Fed fabricating loan level data?"
Fast forward one year when none other than Bank of America, in not quite as explicit language, reveals a chart and a question mark, which is essentially a carbon copy of what Zero Hedge asked one year ago.
Because as the chart below shows, there very dramatic, and very glaring discrepancy between what BofA started experiencing one year ago (when we first noted it) when it comes to loan creation, and what the Fed represents every Friday in its weekly H.8 statement, has never been greater!
So back to the original question - just whose data is accurate: the bank making the loans or the bank's regulator whose only job is to promote confidence, even if it means openly fabricating data?
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Well, the bankers and financiers can still access all the money they want for zero interest...
tick tock motherfuckers...
The bank is accurate, they are subject to shareholders and auditing so their books must balance other wise they could lose their charter not that I think that would happen but I believe they are accurate or at least more accurate. The FED answers to no one and doesn't open their books to any body so is this question rhetorical?
The Empire makes its own reality. What are we going to do about it?
Is it possible these banks (and others - although Wells Fargo accounts for 30% of the home loan market by itself) are originating loans and selling them on the secondary market so the are not 'holding' them for purposes of your analysis? I would like to understand the total amount of originations, not originations that are held by the originating bank.
Your question: What are we going to do about it?
My answer: Do not participate... period.
The Fed is using Chinese accounting now......
...yes, further destroying any remaining credbiity. Global Weimar bitchez...
I'm just waiting for them to announce bonded warehouse's full of copper and aluminum......
Just curious....what credibility DO we have on any subject?
Lies and Secrets.........that's how you run a modern economy......
Ah..because...
CONFUCIUS SAY: two wrongs not make right, but two rights make U-turn.
People dont borrow in bad weather, econ 101.
Looks like the biggest discrepancy since Lehman.
Fornicating the data.
fify
so in 2013 the fed understated the loans? for what reason?
we fabricated some data
Just seasonally adjusted.
The Fed, as a private entity, can be sued correct?
Are the means in place for that to happen?
Does it need to be done on an individual level or class-action-type of event?
I do not know these things, but let's stop being reactive on the sidelines sitting by and watching.
There are enough smart, connected people here where the conversation can at least begin and somebody will eventually have the balls to move forward.
Gee, who's gonna win that one, poor Joe Blow or the bank with a license to print (bribe) moar?
Stay away from the nailguns.
Agreed, but at some point, somone, somehow needs to do SOMETHING. This is why the fucktards run the show. Whether through their connections and elections or other nefarious means, most of us sit idly by as it happens and continues to happen. We acknowledge the fraud and move on. Nothing more.
Seemingly neither you, nor I, or others are finally standing up to do something about it. As you point to, is it because we're afraid of meeting our demise via nailgun? Perhaps, but I'd venture to say it's more due to nobody putting up a good enough fight yet.
We're learning a lot about this enemy, and this community (amongst others) continues to grow, become more knowledgable and more engaged. As long as we stay away from hot tubs, Mercedes and nailguns, we might have a chance.
It's easy to bitch. It's easy to take care of yourself and/or prep yourself and family for TEOTWAWKI and it's easy to sit back and watch the world burn.
It's not easy to be a pioneer and take the first steps to fight something bigger than us all.
It's none of us, as far as I can see at the moment, but at some point, it will happen. Whether its me, you or another ZHer who knows. I just tend to believe we're engaged enough and potentially connected enough to actually do something.
Time will tell.
there have been an endless stream of "pioneers" and if they come near power or disagree, they die. Just accept that the ones in power ARE in power. One side, is armed to the teeth, the homeowners, and they are in no way going to do anything. The other side, can use men from ANY nation, to kill whomever, and in many methods. There is no hope, you can only ask god to do something.
100% of nothing is nothing.
But hey, the lawyers will get rich(er) and hire a couple more illegals to fold their shorts and clean their pools.
Leveraged to their level means there is NOTHING left for a lawsuit.
If everything else weren't already setting us up for slaughter, our destructive lawsuit and judicial based world would kill us anyway.
Well, Q 1 bank earnings are just weeks away, should be interesting.
WHAT DIFFERENCE DOES IT MAKE!
NO ONE GOES TO PRISON ANYMORE!
The Federal Reserve could get away with murder. They know they are above the law.
Maybe someone went on maternity leave and forgot to update the file?
Fat finger!
Fools, they are not looking at the seasonally adjusted hypithecated numbers with adjustments for temperature and velocity. Nor did they index the numbers to the seasonally adjusted pool of retrograde non delinquent non cash reserves that could have been loaned but maybe in process thet were authorised but due to cold weather and a wetback monkey losing his pen didnt get signed off in time
Any idiot could see how BoA could make such a foolish mistake.
They didnt ask the fucking pig yellen
this is worth a look....... https://www.youtube.com/watch?v=6CGyASDjE-U
"When it becomes serious, you have to lie." - Jean Claude Juncker
What do you expect from a criminal organization like the Federal Reserve?
Admired and idolized by the spenders in DC.
Why would anyone believe anything either one of these "fine and upstanding" institutions says?
And Sadam had WMD's right?
And for all of you old guys who lost good friends in Viet Nam; Uncle Ho really wanted to be a ChiCom or a Russian Stooge right? How many good guys did we lose there? For what?
Like all wars....to the benefit of war profiteers and banks.
vietnam was called "spellys war" ................... correctly. https://www.youtube.com/watch?v=O6FT94xJ9hA
In case you missed it, Ho Chi Minh killed off many thousands of S. Vietnamese just like a good communist would after the war.
Whatever he was before switching sides, he wasn't exactly sunshine and rainbows.
As I have always said:
Any data on the federal reserve websites is just made up, totally fabricated without much care, across all Fed websites, central and regional
FED Might be showing its own Loans to Foreign Agents again.
We know they said they would stop, but it is QE Season in Europe and Spring is coming. S/
While the right hand has you bedazzled with its sleight-of-hand, the left hand is handing out MRAP vehicles and other various in sundry war-making materiel for the coming peace $dividend when all the lies catch fire...
Are there only 4 banks who report loan origination? If not, then what about the rest of them?
Derivatives must be propped up. Can't have losses you know.
Mark to Fantasy Bitchez.
Needn't say much more.
All "fundamentals" are lies. Drive around and show me the engine of "growth" in our GDP.
I see more empty retail, medical office and production facilities. Apparently, I'm the only one that sees it.
The truth is buried so far under bull shee't, we don't have big enough shovels to find it.
Seasonal adjusted
Central bank balance sheets as percent of IMF nominal GDP:
http://fingfx.thomsonreuters.com/2011/12/21/1652597407.htm
Debt to GDP ratios:
http://fingfx.thomsonreuters.com/2015/03/19/111450d1ad.htm
The Fed has also "adjusted" its data on non-financial corporate debt a few months ago, making a full $2.6 trillion in debt disappear from the statistics. No-one I have asked could tell me what they have actually done in this case. How can $2.6 trillion simply be "adjusted" into the netherworld?
Look...Squirrel!!
Why is 2010 shown twice?