Comments on: Economic/Market Highlights..12/16…”Follow the Money!!” http://www.noquarterusa.net/blog/8793/economicmarket-highlights1216follow-the-money/ Sun, 27 May 2012 12:54:00 +0000 hourly 1 http://wordpress.org/?v=3.0.4 By: LD http://www.noquarterusa.net/blog/8793/economicmarket-highlights1216follow-the-money/#comment-1095255 LD Thu, 18 Dec 2008 13:53:14 +0000 http://www.noquarterusa.net/blog/?p=8793#comment-1095255 Snickers, Thanks for the plug. Happy to provide some enlightenment to you and other loyal readers here at NQ. Do me a favor and spread the word to your family and friends!! Snickers,

Thanks for the plug. Happy to provide some enlightenment to you and other loyal readers here at NQ.

Do me a favor and spread the word to your family and friends!!

]]> By: Snickers http://www.noquarterusa.net/blog/8793/economicmarket-highlights1216follow-the-money/#comment-1095148 Snickers Thu, 18 Dec 2008 06:19:01 +0000 http://www.noquarterusa.net/blog/?p=8793#comment-1095148 LD, I always look forward to your articles, and I'm getting a real understanding of what's happening/happened in our economy thanks in large part to you. LD, I always look forward to your articles, and I’m getting a real understanding of what’s happening/happened in our economy thanks in large part to you.

]]> By: LD http://www.noquarterusa.net/blog/8793/economicmarket-highlights1216follow-the-money/#comment-1095022 LD Thu, 18 Dec 2008 02:45:50 +0000 http://www.noquarterusa.net/blog/?p=8793#comment-1095022 A weak dollar can actually benefit our exports but that is predicated on decent overseas demand. Aside from that there are no real benefits to a weak currency. It is inflationary, an indication of massive trade deficits and low interest rates, and a serious drag on future growth, as it detracts from foreign capital investing in our country. NOT GOOD!! Thanks for sharing that Bloomberg story. I really like that site. Nice find. A weak dollar can actually benefit our exports but that is predicated on decent overseas demand. Aside from that there are no real benefits to a weak currency. It is inflationary, an indication of massive trade deficits and low interest rates, and a serious drag on future growth, as it detracts from foreign capital investing in our country.

NOT GOOD!!

Thanks for sharing that Bloomberg story. I really like that site. Nice find.

]]> By: lark http://www.noquarterusa.net/blog/8793/economicmarket-highlights1216follow-the-money/#comment-1094994 lark Thu, 18 Dec 2008 01:54:49 +0000 http://www.noquarterusa.net/blog/?p=8793#comment-1094994 <blockquote>Dollar No Longer Haven After Fed Moves Rate Near Zero (Update2) </blockquote> http://www.bloomberg.com/apps/news?pid=newsarchive&sid=a1MsoPDHjFS4 Why something this obvious was ignored when deciding on a rate cut?

Dollar No Longer Haven After Fed Moves Rate Near Zero (Update2)

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=a1MsoPDHjFS4

Why something this obvious was ignored when deciding on a rate cut?

]]> By: LD http://www.noquarterusa.net/blog/8793/economicmarket-highlights1216follow-the-money/#comment-1094939 LD Thu, 18 Dec 2008 00:09:47 +0000 http://www.noquarterusa.net/blog/?p=8793#comment-1094939 I agree with you that we need to have regulations that are effective and properly utilized by regulators. In regard to the bad positions at the banks, we need capital to replenish the system. How do we get that capital from the private market? In regard to credit, I think that as long as credit is properly priced through a disciplined credit underwriting process the market will work that out, although not instantaneously. All of this is a process. I do think that we run the risk of another leg down in this entire mess as unemployment is bound to move higher. I appreciate your thoughts!! I agree with you that we need to have regulations that are effective and properly utilized by regulators.

In regard to the bad positions at the banks, we need capital to replenish the system. How do we get that capital from the private market?

In regard to credit, I think that as long as credit is properly priced through a disciplined credit underwriting process the market will work that out, although not instantaneously. All of this is a process.

I do think that we run the risk of another leg down in this entire mess as unemployment is bound to move higher.

I appreciate your thoughts!!

]]> By: Linda C. http://www.noquarterusa.net/blog/8793/economicmarket-highlights1216follow-the-money/#comment-1094885 Linda C. Wed, 17 Dec 2008 22:52:17 +0000 http://www.noquarterusa.net/blog/?p=8793#comment-1094885 LD I am not in favor of reducing the capital gains tax to zero since it really does nothing to fix the system. We need some regulations, but more importantly we need some regulators who beleive in regulation...We need to clean up the shadow banking system..get rid of these toxic assets. I don't beleive in buying them from out of our own generosity either. Pennies on the dollar as far as I am concerned. I also beleive we need to strengthen the regional banking system. There are many banks and credit unions that did not participate in the ponzi scheme of derivatives and sub primes. We need to work with them to get things going again.Also we need to re-structure debt. Continuously raising interest rate on credit cards is going to backfire. People will simply stop paying leading to another collapse which isn't too far off. LD
I am not in favor of reducing the capital gains tax to zero since it really does nothing to fix the system.

We need some regulations, but more importantly we need some regulators who beleive in regulation…We need to clean up the shadow banking system..get rid of these toxic assets. I don’t beleive in buying them from out of our own generosity either. Pennies on the dollar as far as I am concerned. I also beleive we need to strengthen the regional banking system. There are many banks and credit unions that did not participate in the ponzi scheme of derivatives and sub primes. We need to work with them to get things going again.Also we need to re-structure debt. Continuously raising interest rate on credit cards is going to backfire. People will simply stop paying leading to another collapse which isn’t too far off.

]]> By: LD http://www.noquarterusa.net/blog/8793/economicmarket-highlights1216follow-the-money/#comment-1094810 LD Wed, 17 Dec 2008 20:33:53 +0000 http://www.noquarterusa.net/blog/?p=8793#comment-1094810 you GOT it!! you GOT it!!

]]> By: Linda C. http://www.noquarterusa.net/blog/8793/economicmarket-highlights1216follow-the-money/#comment-1094800 Linda C. Wed, 17 Dec 2008 20:16:28 +0000 http://www.noquarterusa.net/blog/?p=8793#comment-1094800 From how I understand this, the banks are hoarding their cash to cover the bad loans they have already made. They do not want to lend to anyone including each other for fear they will be left short. Of course this will leave them short as it will accelerate the eventual default on loans...but I think the banks hope it will happen "to the other bank" and not their bank. The TARP money is really not going to buy the toxic securities out there and there is no market for them. They are left on the banks books. There is really no way to put a value on the toxic securities since no one knows what any of them might contain. I wonder if going back to the reverse auction is going to be what is needed. Knowing that financial institutions still have these toxic assets on their books is going to make me think twice about investing in them even if the capital gains taxes would be reduced to zero. People are still investing in treasuries even though the return is less than zero now. http://www.bloomberg.com/apps/news?pid=20601087&sid=aZBA3Luek4AY&refer=home Dec. 17 (Bloomberg) -- For all their efforts to liquefy credit markets, the Federal Reserve and the Treasury show no signs of ending the 18-month freeze, as evidenced by the unprecedented gap between what banks and the U.S. government pay to borrow money. .... While the Standard & Poor’s 500 Index is up 23 percent from last month’s low and the Fed promised to use all tools at its disposal to end the longest recession in a quarter century, investors remain wary of any securities except Treasuries. As banks hoard cash, businesses are struggling to refinance debt and consumers can’t get loans, restraining an economy forecast to shrink 4 percent this quarter, according to the median estimate of 79 strategists surveyed by Bloomberg. ..... “There is no demand coming from the interbank market at all,” said Patrick Jacq, a senior fixed-income strategist for Paris-based BNP Paribas SA, France’s largest bank. “Banks are borrowing straight from the Fed and hoarding that cash till they need some and then returning to the Fed. We don’t expect a return to normal conditions in the coming six months.” From how I understand this, the banks are hoarding their cash to cover the bad loans they have already made. They do not want to lend to anyone including each other for fear they will be left short. Of course this will leave them short as it will accelerate the eventual default on loans…but I think the banks hope it will happen “to the other bank” and not their bank. The TARP money is really not going to buy the toxic securities out there and there is no market for them. They are left on the banks books. There is really no way to put a value on the toxic securities since no one knows what any of them might contain. I wonder if going back to the reverse auction is going to be what is needed. Knowing that financial institutions still have these toxic assets on their books is going to make me think twice about investing in them even if the capital gains taxes would be reduced to zero. People are still investing in treasuries even though the return is less than zero now.

http://www.bloomberg.com/apps/news?pid=20601087&sid=aZBA3Luek4AY&refer=home

Dec. 17 (Bloomberg) — For all their efforts to liquefy credit markets, the Federal Reserve and the Treasury show no signs of ending the 18-month freeze, as evidenced by the unprecedented gap between what banks and the U.S. government pay to borrow money.
….
While the Standard & Poor’s 500 Index is up 23 percent from last month’s low and the Fed promised to use all tools at its disposal to end the longest recession in a quarter century, investors remain wary of any securities except Treasuries. As banks hoard cash, businesses are struggling to refinance debt and consumers can’t get loans, restraining an economy forecast to shrink 4 percent this quarter, according to the median estimate of 79 strategists surveyed by Bloomberg.
…..
“There is no demand coming from the interbank market at all,” said Patrick Jacq, a senior fixed-income strategist for Paris-based BNP Paribas SA, France’s largest bank. “Banks are borrowing straight from the Fed and hoarding that cash till they need some and then returning to the Fed. We don’t expect a return to normal conditions in the coming six months.”

]]> By: LD http://www.noquarterusa.net/blog/8793/economicmarket-highlights1216follow-the-money/#comment-1094786 LD Wed, 17 Dec 2008 19:47:34 +0000 http://www.noquarterusa.net/blog/?p=8793#comment-1094786 Fiscal...I really do not know or have opinion on the head of HUD. In regard to the default rate on those modified loans. No surprize because without a reduction in the principal and continued declines in the housing market, then those homeowners have little to no incentive to try to stay current on their mortgage. Provide some sort of tax incentives and credits for new buyers to enter the market and transfer the asset (that is the home) from weak hands to strong. Fiscal…I really do not know or have opinion on the head of HUD. In regard to the default rate on those modified loans. No surprize because without a reduction in the principal and continued declines in the housing market, then those homeowners have little to no incentive to try to stay current on their mortgage.

Provide some sort of tax incentives and credits for new buyers to enter the market and transfer the asset (that is the home) from weak hands to strong.

]]> By: LD http://www.noquarterusa.net/blog/8793/economicmarket-highlights1216follow-the-money/#comment-1094778 LD Wed, 17 Dec 2008 19:40:46 +0000 http://www.noquarterusa.net/blog/?p=8793#comment-1094778 Mountainaires, Thank you very much for sharing that sight? What do you think of Jurt's thoughts? I think he is addressing some of what we have tried to broach here about the "embedded losses" in the system that nobody in the administration (Bernanke, Paulson et al) wants to openly estimate. I do think he is somewhat of a conspiracy theorist and an alarmist. A lot of what he is ptting forth is very insightful and accurate but it is a reflection of the market and what did occur but it was not a function of the few strictly trying to "take advantage" of the many. At least I do not believe that. That's too simplistic for me. I do appreciate your sharing the site. LD Mountainaires,

Thank you very much for sharing that sight? What do you think of Jurt’s thoughts? I think he is addressing some of what we have tried to broach here about the “embedded losses” in the system that nobody in the administration (Bernanke, Paulson et al) wants to openly estimate.

I do think he is somewhat of a conspiracy theorist and an alarmist.

A lot of what he is ptting forth is very insightful and accurate but it is a reflection of the market and what did occur but it was not a function of the few strictly trying to “take advantage” of the many. At least I do not believe that. That’s too simplistic for me.

I do appreciate your sharing the site.

LD

]]> By: LD http://www.noquarterusa.net/blog/8793/economicmarket-highlights1216follow-the-money/#comment-1094777 LD Wed, 17 Dec 2008 19:40:19 +0000 http://www.noquarterusa.net/blog/?p=8793#comment-1094777 Mountainaires, Thank you very much for sharing that sight? What do you think of Jurt's thoughts? I think he is addressing some of what we have tried to broach here about the "embedded losses" in the system that nobody in the administration (Bernanke, Paulson et al) wants to openly estimate. I do think he is somewhat of a conspiracy theorist and an alarmist. A lot of what he is ptting forth is very insightful and accurate but it is a reflection of the market and what did occur but it was not a function of the few strictly trying to "take advantage" of the many. At least I do not believe that. That's too simplistic for me. I do appreciate your sharing the sight. LD Mountainaires,

Thank you very much for sharing that sight? What do you think of Jurt’s thoughts? I think he is addressing some of what we have tried to broach here about the “embedded losses” in the system that nobody in the administration (Bernanke, Paulson et al) wants to openly estimate.

I do think he is somewhat of a conspiracy theorist and an alarmist.

A lot of what he is ptting forth is very insightful and accurate but it is a reflection of the market and what did occur but it was not a function of the few strictly trying to “take advantage” of the many. At least I do not believe that. That’s too simplistic for me.

I do appreciate your sharing the sight.

LD

]]> By: fiscalliberal http://www.noquarterusa.net/blog/8793/economicmarket-highlights1216follow-the-money/#comment-1094776 fiscalliberal Wed, 17 Dec 2008 19:35:50 +0000 http://www.noquarterusa.net/blog/?p=8793#comment-1094776 LD - interesting detail in the following WAPO article HUD Chief Calls Aid on Mortgages A Failure Any thoughts on your part on Preston who is the head of HUD. From other articles, I understand they are getting a 40% recursion rate on modified loans in 6 Months. LD – interesting detail in the following WAPO article

HUD Chief Calls Aid on Mortgages A Failure

Any thoughts on your part on Preston who is the head of HUD.

From other articles, I understand they are getting a 40% recursion rate on modified loans in 6 Months.

]]> By: mountainaires http://www.noquarterusa.net/blog/8793/economicmarket-highlights1216follow-the-money/#comment-1094768 mountainaires Wed, 17 Dec 2008 19:22:35 +0000 http://www.noquarterusa.net/blog/?p=8793#comment-1094768 The Market Ticker: http://market-ticker.denninger.net/ The Market Ticker:

http://market-ticker.denninger.net/

]]> By: LD http://www.noquarterusa.net/blog/8793/economicmarket-highlights1216follow-the-money/#comment-1094734 LD Wed, 17 Dec 2008 18:26:03 +0000 http://www.noquarterusa.net/blog/?p=8793#comment-1094734 The reason for lowering the capital gains rate is for the benefit of "new" capital to enter the market. If they are caught up on "fairness" with unemployment getting ready to move up dramatically then they just don't get it. I do not think Obama will raise any taxes. He may not "get it" when it comes to the markets but he is also not so stupid as to raise any taxes at this juncture. The reason for lowering the capital gains rate is for the benefit of “new” capital to enter the market. If they are caught up on “fairness” with unemployment getting ready to move up dramatically then they just don’t get it.

I do not think Obama will raise any taxes. He may not “get it” when it comes to the markets but he is also not so stupid as to raise any taxes at this juncture.

]]> By: justsomeone http://www.noquarterusa.net/blog/8793/economicmarket-highlights1216follow-the-money/#comment-1094731 justsomeone Wed, 17 Dec 2008 18:23:13 +0000 http://www.noquarterusa.net/blog/?p=8793#comment-1094731 Chris Cox is getting ready to hold a press conference on CNBC. I gotta go. Thanks. Chris Cox is getting ready to hold a press conference on CNBC. I gotta go. Thanks.

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