U.S. CitiesCity-Data Forum Index
Happy Independence Day!
Go Back   City-Data Forum > General Forums > Economics
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 06-13-2020, 06:26 AM
 
Location: Boston
12,976 posts, read 3,737,209 times
Reputation: 9229

Advertisements

reading the Atlantic for financial forecasting is probably the last thing I would do.
Reply With Quote Quick reply to this message

 
Old 06-13-2020, 12:23 PM
 
8,311 posts, read 7,499,676 times
Reputation: 3963
Most of this new money/electronic ledger entries is just bankers exchanging between each other. Guy wants to sell his house, buyer gets money from bank gives all to seller, seller gives most of that to bank to pay off his loan.

What are we really facilitating? Is this really benefitting the vast majority of people?

"People need business loans". Well, we are seriously over-retailed, and over developed. We got that way because of all that money or credit floating around out there. All these businesses are closing regardless or they try and sell, which is basically same thing as the house scenario.

Is this to help facilitate all the new residential developments in NYC, or PHX, or where ever? Our population is going down. Who is going to buy these new condos so why a need to build them? Its like China with its ghost cities.

All these new money will devalue labor. As the denomination keeps increasing, regular people have to work more and more to catch up. Bankers dont have this hindrance.

At this point we may as well cut off the banks completely. The Govt can just create new money, and divide it amongst the people. Why let the bankers be in the middle, control where it goes, and dictate terms? They just do this to enrich themselves.
Reply With Quote Quick reply to this message
 
Old 06-13-2020, 02:57 PM
 
Location: Myrtle Creek, Oregon
14,331 posts, read 13,895,434 times
Reputation: 23248
Mechanization and automation are devaluing labor. We don't need as many workers as we once did. The backhoe replaced the shovel. Computers replaced paper files and secretaries. The internet replaced stock brokers. With the means of production automated, 70% of our GDP is service jobs, many of which are unnecessary.

Our economy is going to go through a massive restructuring, faster than is compatible with good order, but slower than the people harmed by the recession would like. We absolutely have to have a functioning financial sector, but people are going to be upset by the massive corporate socialism it will take to rescue them. If we punish the banking sector by letting them go belly up, it's going to ruin us all.
Reply With Quote Quick reply to this message
 
Old 06-13-2020, 05:41 PM
 
Location: Brawndo-Thirst-Mutilator-Nation
17,921 posts, read 18,104,395 times
Reputation: 14552
NOPE, ZiRP will be with us for another 10-year run............that will spur people to spend, spend and spend some more, while discouraging saving. This is great for banks.
Reply With Quote Quick reply to this message
 
Old 06-13-2020, 05:58 PM
 
12,605 posts, read 17,656,900 times
Reputation: 14331
There are banks and there are banks.
There are banks that exist only as speculators.
There are small mom and pop banks.
There are all kinds of banks that call themselves banks.
Of course they will be all gone.
Reply With Quote Quick reply to this message
 
Old 06-13-2020, 05:59 PM
 
9,277 posts, read 8,116,304 times
Reputation: 7740
The thing to look at is the repos provided by the Fed. The increasing repo activity tells you that the banks don't want to finance these assets (probably the collateral is over-inflated due to mark-to-model accounting same as CDO's). It's coming at the end of the quarter when they want to keep their assets off their books.
Reply With Quote Quick reply to this message
 
Old 06-13-2020, 09:07 PM
 
1,381 posts, read 737,946 times
Reputation: 3543
Stunning.

Clickbait? Silly response based upon nothing.


Dissing The Atlantic without looking at the superbly qualified author? Silly.


It's a highly academic, financial article. You've got to want to do the work. Most won't. Clearly.



Lazy is as lazy does.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Economics
Follow City-Data.com founder on our Forum or

All times are GMT -6.

© 2005-2020, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Contact Us - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37 - Top