Posted on 12/12/2008 8:56:58 AM PST by shove_it
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TEXT OF INTERVIEW Scott Jagow: You ready for this? A new report says there is no credit crunch. There's a financial crisis, obviously, but access to credit is not the problem, even though the Treasury and the Fed have said it is a problem. This report comes from the financial services consultant Celent. And we're joined now by the head of the firm, Octavio Marenzi. Octavio, this is kind of surprising. What are you basing this on?
Octavio Marenzi: Mostly from the Federal Reserve itself. So the vast majority of the numbers that we used in this report actually come from the Federal Reserve, and in area after area what we found is that really, a lot of the lending, a lot of the things being said about the credit crisis or the nature of the financial crisis aren't born out by those numbers. So we found that bank lending is at a record high, consumer credit is at a record high, inter-bank lending is at a record high. All these things that we've been told have basically dried up are actually flowing quite well.
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(Excerpt) Read more at marketplace.publicradio.org ...
It’s semantics, but it does seem more accurate to call this a “debt crisis” rather than a “credit crisis.”
“It’s semantics, but it does seem more accurate to call this a “debt crisis” rather than a “credit crisis.””
I agree. Easy credit, too much debt got us much of this mess.
It’s not just semantics. A “credit crisis” might affect purchases by those with the ability to pay. A debt crisis does not affect continued economic activity except for those who are overextended. Those of us who get dozens of credit offers a week in snail mail, email and by phone, with no letup during this “crisis” have always known the crisis was being described inaccurately.
Let every bank and company fail that is in trouble and let others who are more responsible buy those assets at pennies on the dollar.
We are subsidizing idiocy. I hate RINOs and Liberals.
Call it whatever you want, but the problem is banks are hoarding cash because of the junk in the financial system. It’s too bad the spineless and clueless in the W administration aren’t sticking to the original plan of cleaning the junk out of the system.
Once scumbags like my brother-in-law started qualifying for CC I knew we were screwed.
I challenge his assertion that lending is at an all time high. What does that mean? Does that mean that the new loans made for November 2008 were at an all time high. I don’t think so. I would bet he means that the cumulative outstanding loans that have been made over the past decades have hit an all time high. Big deal.
If he is going to clain that “lending is an all time high” and if he is implying that it is easier to get credit today than it was a year ago, I want to see the numbers. He should have been asked point blank, “are you saying more money was lent in the last month alone than in any previous month, or a year ago.” I’m sure his answer would be “no”.
I wonder if he is including all of the bailout loans as “credit” which is complete BS. The FedGov loaning taxpayer money for an emergency should NOT be counted as “credit”. That is BS.
We ARE in a credit crisis. When banks won’t lend freely, and they sure hall aren’t, you are in a credit crisis. There is ample credit for those with great credit scores, as many Freepers here are finding with lots of credit card offers they don’t need. We are back to the point where you can easily get credit, but only if you don’t need it. If you really need it, you can’t get it. I call that a credit crisis.
I heard on the radio yesterday that US banks normally keep a cash reserve of $3 billion - and that they now have a cash reserve of $600 billion.
They take our tax money and sit on it.
I have something else they can sit on.
http://www.cnbc.com/id/15840232?video=961160046&play=1
At 1:35 in the interview, Kudlow discusses a recent drop in US Interbank Lending and shows a chart to illustrate it. But the chart does not depict the freeze up that Paulson was so panicked about.
The statements posted are sound. The whole nation and much of the world is all debted (borrowed) out. We can’t afford more nor do we want anymore. Unfortunately, credit fiat currency requires new debt be created to continue the game. When there is no debtors available the system collapses. I learned this when I was in junior high school and I will know it until I die...
It’s the bankers desire that few understand such a simple concept. Our currently presiding government would rather hide this fact also. So would plenty of Harvard boys and lots of our fellow citizens.
And if we had $600 billion, we'd be sitting on it right now too. So who are the real idiots? < /rhetorical question>
Great explanation. What is the way out of a credit fiat currency system?
Lincoln prepared for his presidency by studying mathematics. During the Civil War, bankers harassed Lincoln to accept an unlimited loan to finance the North against the South. Pondering the costs of mere evidence of debt the country could have issued to itself without interest, Abraham Lincoln too ventured the rectification of economics.
Lincoln avoided the usurious national debt the country would have been subject to ever afterward had he instead accepted the mere paper or records of debt of the bankers. He printed the money himself.
Bankers and "economists" have since denounced the currency he issued as "inflationary". It was of course no more inflationary than the currency the bankers would have created at virtually no cost whatever. Lincoln's currency lacked only the "interest," by which the bankers would have profitted perpetually. He was soon assassinated ? from _the_rear_.
"I have two great enemies, the Southern Army in front of me and the bankers in the rear. Of the two, the one at my rear is my greatest foe. [As a most undesirable consequence of the war...] Corporations have been enthroned, and an era of corruption in high places will follow. The money power of the country will endeavor to prolong its reign by working upon the prejudices of the people until the wealth is aggregated in the hands of a few, and the Republic is destroyed." --Abraham Lincoln
Too bad BHO ain’t no Abraham Lincoln.
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