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Nice job parroting the Fed, but its still hogwash. There has been very little increase or in some cases decreases in demand, while the money being used to bet in the commodity markets has been greatly expanded through overnight loans from the Fed. The result is huge profits for the too big to fail banks, which are helping to offset their loan losses.
Totally agree. IF that Fed funny money was out in circulation we'd see more but it's not. Joe Mainstreet is not getting that QE money..banks are and using it to turn profits. Borrow at near 0%, make a mint and pay back.
It's a win/win for the banks.
Some are borrowing at near 0% and buying treasuries; another win/win using other people's money to generate revenue.
Totally agree. IF that Fed funny money was out in circulation we'd see more but it's not. Joe Mainstreet is not getting that QE money..banks are and using it to turn profits. Borrow at near 0%, make a mint and pay back.
It's a win/win for the banks.
Some are borrowing at near 0% and buying treasuries; another win/win using other people's money to generate revenue.
The banks are also "covering" the Trillion$ of Credit Cards accounts that are defaulting.
The banks had been showing future earnings of 20 to 30% on those accounts that are now being forced to be written off as losses -- not just on the false returns, but the even the return of the capital, itself.
The outstanding CC debts are reducing because accounting practices require they be written off after 6 months to a year.
That is what is sort of comical about the pretense that real world people are paying down the various debts. No they are not -- the whole mess is just evaporating like gasoline in open buckets in the hot summer Sun.
Same way the fake value of housing is/was evaporating.
Nice job parroting the Fed, but its still hogwash. There has been very little increase or in some cases decreases in demand, while the money being used to bet in the commodity markets has been greatly expanded through overnight loans from the Fed.
More "We are the center of the universe" nonsense. Although demand in the US has remained weak, globally it is not weak. The global production has already surpassed levels seen before the recession and some countries are hoarding natural resources.
The FED couldn't control global commodity prices if it wanted to, the US is not the center of the universe. Furthermore, banks aren't using over-night loans to bet in the commodity markets, the amount loaned at any given time via the discount window is relatively small.
More "We are the center of the universe" nonsense.
We aren't the center of the universe. The banks are.
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Although demand in the US has remained weak, globally it is not weak.
Demand for what? We're awash in $108/bbl oil.
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The global production has already surpassed levels seen before the recession and some countries are hoarding natural resources.
You're ignoring the hoarding of natural resources prior to the recession. As I recall, the US and China were both filling their SPRs during the peak of the oil bubble.
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The FED couldn't control global commodity prices if it wanted to, the US is not the center of the universe.
If the Hunt brothers could do it, the Fed certainly can. Volker's rate hikes and Greenspan's housing bubble are two prime examples of indirect Fed market manipulation. Do you have any evidence that they can't or don't do it either directly as the IMF does? Even if they aren't first party to the manipulation, it wouldn't be hard for them to fix commodity prices in the same way they use anonymous bidders to fix bond prices.
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Furthermore, banks aren't using over-night loans to bet in the commodity markets, the amount loaned at any given time via the discount window is relatively small.
We aren't the center of the universe. The banks are.
US banks aren't the center of the universe either, the FED only controls the US banking system.
Demand for what? Commodities, again global production has increased sharply since the recession.
The Hunt Brothers try to corner a relatively small market, you are talking about the FED manipulating the entire global economy despite the fact that it has no control over what happens in other countries.
I don't trust much in what WalMart has to say. They've been shrinking product size for over a year now and raising prices a few pennies at a time. And their customer base is smarter than they think they are. I've seen WalMart parking lots have less cars and significantly smaller lines in the stores. So now all the merchandise they carry is having less turns. Thus now they say what they are going to do and blame the economy for something they've been doing for years. For the fiscal year end of 2010, they made more gross sales and more net profit than either 2009 or 2008. Yet they had smaller customer counts.
US banks aren't the center of the universe either, the FED only controls the US banking system.
Demand for what? Commodities, again global production has increased sharply since the recession.
The Hunt Brothers try to corner a relatively small market, you are talking about the FED manipulating the entire global economy despite the fact that it has no control over what happens in other countries.
you might want to read this, since you don't see to understand that the federal reserve is an INTERNATIONAL banking cartel:
U.S. Federal Reserve Chairman Ben S. Bernanke’s two-year fight to shield crisis-squeezed banks from the stigma of revealing their public loans protected a lender to local governments in Belgium, a Japanese fishing-cooperative financier and a company part-owned by the Central Bank of Libya.
Dexia SA (DEXB), based in Brussels and Paris, borrowed as much as $33.5 billion through its New York branch from the Fed’s “discount window” lending program, according to Fed documents released yesterday in response to a Freedom of Information Act request. Dublin-based Depfa Bank Plc, taken over in 2007 by a German real-estate lender later seized by the German government, drew $24.5 billion.
The biggest borrowers from the 97-year-old discount window as the program reached its crisis-era peak were FOREIGN banks, accounting for at least 70 percent of the $110.7 billion borrowed during the week in October 2008 when use of the program surged to a record. The disclosures may stoke a reexamination of the risks posed to U.S. taxpayers by the central bank’s role in global financial markets.
i would think that the american taxpayers would be pretty concerned about this information.
Besides oil, copper, steel, gold, silver, platinum, etc, are all at levels I do not ever recall being sustained for several months at a time. If there is not much, much higher inflation near-term, I'm afraid for the reality check we'd face in a year or two, as it would mean true monkey biz is going on.
China is back, fueling demand, suppliers got smart, closed facilities to right-size supply, and that allowed prices to rise. same as the airlines who parked planes to right-size supply/demand, than raised prices.
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