Posts Tagged ‘lending money’

Because if the Fed Knows How to Do One Thing, It’s How to Have Meetings

Because if the Fed Knows How to Do One Thing, It’s How to Have Meetings

Courtesy of Jr. Deputy Accountant 

 That could easily be little Timmy down the block
his dad owns a small business and learned about the free money

Dow Jones:

The Federal Reserve will hold a conference next week on financing for small businesses.

The Fed on Wednesday announced the conference, which will be held Monday. Chairman Ben Bernanke is scheduled to make opening remarks.

The Fed is sponsoring the event to discuss strategies to improve access to credit for small businesses.

Hopefully Zimbabwe Ben‘s opening remarks go something like "Hey, small business, if you would like a piece of this, back your truck up to the back door" since he’s giving it away for free. Devaluation is his only way out I hear and what better way to do that than by handing it out? Sorry, having a meeting about handing it out and then handing it out. 

Please. We all know what happens at these so-called meetings. Sometimes Federal Reserve events are, sadly but not surprisingly, behind the curve. This one should be called the Free Money Symposium and Bernanke can discuss modern money mechanics (I print it, you spend it) and how small business owners can get a piece. Maybe they should be allowed to borrow easy money directly from the Fed at .00000000000001%, that would easily accomplish Bernanke’s other job of keeping unemployment low. Win for everyone surely. 

 


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Is Pent-Up Inflation From Fed Printing Waiting On Deck?

Is Pent-Up Inflation From Fed Printing Waiting On Deck?

Courtesy of Mish

Inquiring minds are wondering about the possibility of "pent-up" inflation from the massive expansion money supply by the Fed. Our search for the truth starts with the question "Which Comes First: The Printing or The Lending?"

This is a critical question given the massive expansion of base money by the Fed as shown in the following chart.

Base Money Supply

Since the beginning of the recession, the Fed has expanded base money supply from $800 billion to $1.7 trillion. Conventional wisdom suggests this money is going to come soaring into the economy at any second causing hyperinflation on the notion banks will lend out 10 times the amount of reserves.

So is this pent-up inflation just waiting to break out?

Hardly.

A funny thing happened to the inflation theory: Banks aren’t lending and proof can be found in excess reserves at member banks.

Excess Reserves

Banks are Insolvent, Consumers Tapped Out

Because of rising credit card defaults, commercial real estate defaults, foreclosures, walk-aways, and other bad debts, banks need those reserves to cover future losses.

In practice, banks are insolvent, unable or unwilling to lend. Moreover, tapped out consumers are unable or unwilling to borrow. As a result, Spending Collapses In All Generation Groups.

Bernanke can flood the world with "reserves" and indeed he has. However, he cannot force banks to lend or consumers to borrow.

Yet every day someone comes up with another convoluted theory about how inflationary this all is. It is certainly "distortionary" in that it creates problems down the road and prolongs a real recovery by keeping zombie banks alive (as happened in Japan). However, it is not (in aggregate) going to cause massive inflation because it is not spurring the creation of new debt.

Consumers and banks both are suffering from a massive hangover. Their willingness and ability to drink is gone. No matter how many pints of whiskey Bernanke sets in front of someone passed out on the floor, liquor sales will not rise.

In a debt-based economy, it is extremely difficult to produce inflation if consumers will not participate. And as noted above, demographics and attitudes strongly suggest consumers have had enough of debt and spending sprees.

Those pointing to flawed measures of money supply as proof of inflation just don’t get it,


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North Korea's growing criminal cyberthreat

 

North Korea's growing criminal cyberthreat

Money is a crucial target for North Korea’s hacking efforts. rega rega/Shutterstock.com

Courtesy of Dorothy Denning, Naval Postgraduate School

The countries posing the greatest cyberthreats to the United States are Russia, China, Ir...



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Zero Hedge

Top South Korean Crypto Regulator Found Dead "From Unknown Cause"

Courtesy of ZeroHedge. View original post here.

The struggle between the South Korean Ministry of Finance and Ministry of Justice over the future of cryptocurrency regulation - a debate that mostly played out during December and January - terrified crypto traders who feared the South Korean government was on the verge of - wittingly or unwittingly - devastating the market.

Headlines about a pending ban in South Korea helped drive the bitcoin price more than 60% lower in January - its largest monthly drop in years - but now that the debate has been settled, the price has been steadily climbing again,...



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Chart School

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Insider Scoop

Stifel Sees Reboot Opportunity For Chipotle, Upgrades From Sell To Hold

Courtesy of Benzinga.

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Digital Currencies

As Bitcoin Nears $11,000, Here's A History Of Its Biggest Ups And Downs

Courtesy of ZeroHedge. View original post here.

The cryptocurrency rebound off Feb 5th's bloodbath lows (below $6,000 for Bitcoin) has been impressive, as a 'mysterious' massive buyer 'bought the dip' and momentum took care of the rest.

With Bitcoin now nearing $11,000 (almost a double off the lows), ...



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Biotech

What is 'right to try,' and could it help?

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What is 'right to try,' and could it help?

In this March 18, 2011 photo, Cassidy Hempel waved at hospital staff as she was being treated for a rare disorder. Her mother Chris, left, fought to gain permission for an experimental drug. AP Photo/Marcio Jose Sanchez

Morten Wendelbo, Texas A&M University and Timothy Callaghan, ...



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Mapping The Market

The tricks propagandists use to beat science

Via Jean-Luc

How propagandist beat science – they did it for the tobacco industry and now it's in favor of the energy companies:

The tricks propagandists use to beat science

The original tobacco strategy involved several lines of attack. One of these was to fund research that supported the industry and then publish only the results that fit the required narrative. “For instance, in 1954 the TIRC distributed a pamphlet entitled ‘A Scientific Perspective on the Cigarette Controversy’ to nearly 200,000 doctors, journalists, and policy-makers, in which they emphasized favorable research and questioned results supporting the contrary view,” say Weatherall and co, who call this approach biased production.

A second approach promoted independent research that happened to support ...



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Members' Corner

An Interview with David Brin

Our guest David Brin is an astrophysicist, technology consultant, and best-selling author who speaks, writes, and advises on a range of topics including national defense, creativity, and space exploration. He is also a well-known and influential futurist (one of four “World's Best Futurists,” according to The Urban Developer), and it is his ideas on the future, specifically the future of civilization, that I hope to learn about here.   

Ilene: David, you base many of your predictions of the future on a theory of historica...



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OpTrader

Swing trading portfolio - week of September 11th, 2017

Reminder: OpTrader is available to chat with Members, comments are found below each post.

 

This post is for all our live virtual trade ideas and daily comments. Please click on "comments" below to follow our live discussion. All of our current  trades are listed in the spreadsheet below, with entry price (1/2 in and All in), and exit prices (1/3 out, 2/3 out, and All out).

We also indicate our stop, which is most of the time the "5 day moving average". All trades, unless indicated, are front-month ATM options. 

Please feel free to participate in the discussion and ask any questions you might have about this virtual portfolio, by clicking on the "comments" link right below.

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Kimble Charting Solutions

Brazil; Waterfall in prices starting? Impact U.S.?

Courtesy of Chris Kimble.

Below looks at the Brazil ETF (EWZ) over the last decade. The rally over the past year has it facing a critical level, from a Power of the Pattern perspective.

CLICK ON CHART TO ENLARGE

EWZ is facing dual resistance at (1), while in a 9-year down trend of lower highs and lower lows. The counter trend rally over the past 17-months has it testing key falling resistance. Did the counter trend reflation rally just end at dual resistance???

If EWZ b...



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All About Trends

Mid-Day Update

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