Posted on 07/31/2023 4:24:21 AM PDT by Kaiser8408a
Bidenomics, aka the Federal government takeover of the US economy with Soviet-style economic central planning, is highly dependent on loose Federal Reserve monetary policy (Janet Yellen and Powell’s wild overreaction to the massively inappropriate Covid shutdowns),
So, how is Bidenomics working out? On the bank lending front, commercial and industrial (C&I) lending growth is crashing along with bank credit growth YoY.
The US Treasury 10Y-2Y yield curve remains deeply inverted at -91.031 basis points and M2 Money growth has crashed. The 30 year mortgage rate is hovering around 7.27%.
And WTI Crude oil futures are up 1% this morning.
The body of Bidenomics.
(Excerpt) Read more at confoundedinterest.net ...
“commercial and industrial (C&I) lending growth”
The big companies have high profits and can self-finance.
The small fry can and do use cheaper home equity financing on bloated house pricing.
The middle of the road entities face competitors with lower financing costs than themselves. There is little demand for more commercial real estate.
As for industrial financing, its mainly self-finance by big entities domestically or done in Asia.
The Democrats are federally financing grid expansion, cutting out private infrastructure finance opportunities. Pipeline companies could have switched over to grid finance.
“The 30-year mortgage rate is hovering around 7.27%.”
Given inflation, the mortgage rates are fair.
“Warren Buffett...constitutional amendment...any time there is a deficit of more than 3 percent of the Gross Domestic Product, all sitting members of Congress will be ineligible for re-election”
If people want lower mortgage rates people have to support federal finance reform.
The economy is crashing with only 3.5% real growth this quarter, record low unemployment, a streaking stock market, high but declining inflation, a Federal Reserve nearing the end of a hiking cycle, a soft landing achieved and Anthony Sanders gnashing his teeth over wrong predictions and market calls day after day after day.
Given that spin, we’re in tall cotton. Perception is reality.
Fact, spin, whatever.
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