Inflation Peaks/Real-gdp Peaks/Interest Rates Peak

[flow5]

Re: Inflation Peaks/Real-gdp Peaks/Interest Rates Peak

There have been only 42 Bank & Thrift failures in the last 10 years. In the 10 years prior to 1997, there were 2,179 Bank & Thrift failures.

http://www2.fdic.gov/hsob/HSOBSummaryRpt.asp? BegYear=2007&EndYear=1979&State=1

[bart]

Re: Inflation Peaks/Real-gdp Peaks/Interest Rates Peak

Contrary to Milton Friedman & Alan Greenspan, depository institutions should be subject to more intense, not less, regulation. In re-organizing our financial institutions the first requirement is to recognize that the competitive freedoms of the mercantile marketplace cannot be applied to the institutions that create our money, or protect our savings.

I couldn't disagree more. If more government and regulations were the answer, we would have the most stable and best banks in the world and would never have had all the messes over the decades and the resulting huge deficits and bills for taxpayers.

If one must have laws and regulations for depository institutions, the first step is to get them out from under the control of the Fed and banks themselves - the vested interests are way too strong and the track history and collusion record is awful.

Then, use a model that actually works better. One example is Euro banks and how they work MBS instruments. They do have similar structures called "covered bonds", but issuing banks must repay investors even if homeowners default... rather than investors getting stuck like in the US.
The banks are therefore much more responsible with lending and stuff like sub primes don't even happen in the first place.

The recent mess in the Euro area was with large banks like Paribas who purchased the toxic derivatives from US sources.

[Guest]

Re: Inflation Peaks/Real-gdp Peaks/Interest Rates Peak

_____________________

Today, 09:36 PM

flow5 Senior Member Join Date: Apr 2007 Posts: 168 Credits: 651

Re: Inflation Peaks/Real-gdp Peaks/Interest Rates Peak

Contrary to Milton Friedman & Alan Greenspan, depository institutions should be subject to more intense, not less, regulation. In re-organizing our financial institutions the first requirement is to recognize that the competitive freedoms of the mercantile marketplace cannot be applied to the institutions that create our money, or protect our savings.

_____________________

#3 Today, 09:41 PM

Rajiv iTulip Select Premium Member Join Date: Jun 2006 Posts: 157 Credits: 2,438

Re: Inflation Peaks/Real-gdp Peaks/Interest Rates Peak Quote: Originally Posted by flow5 Contrary to Milton Friedman & Alan Greenspan, depository institutions should be subject to more intense, not less, regulation. In re-organizing our financial institutions the first requirement is to recognize that the competitive freedoms of the mercantile marketplace cannot be applied to the institutions that create our money, or protect our savings. Well said!

_____________________

COMMENT :

<< the first requirement is to recognize that the competitive freedoms of the mercantile marketplace cannot be applied to the institutions that create our money >>

I doubt many here would disagree that the federal system of issuing credit should not only remain regulated, but that that regulation should be tightened and improved.

But Rajiv's endorsement of your response, focused on your pointing out a wise civic principal (TM) seems at the expense of obtaining no clear response to the question that was actually posed. It seems many of your responses are quite extraordinarily oblique, and I personally don't enjoy being led around by the nose without at least noting for the record that's what is being apparently accomplished.

What's understood: (and it would seem a truism of good government): Reform and tighten not only the Fed's means of issuing credit, but also keep it's ultimate guidance with a civic bias, rather than a commercial bias.

What went un-answered: (at least I could not find a frank response to this question in your reply, despite six re-readings of your text) THE ORIGINAL QUESTION: Are Central Banks (read primarily the US Federal Reserve) the final responsible party in the entire credit chain of responsibility, for causing moral hazard in the issuance of damaging credit on a historic national scale, and now today apparently on a historic global scale? -- WHO, other than the US Federal Reserve Bank, has been until now the most senior global bank responsible for addressing broken mechanisms in the transmittal of credit, which has brought about the national train wreck which is today's US fiscal policy?? Should not a functioning central bank board of governors be the first to refer broken credit transmittal mechanisms to the legislative and executive branches of government? Failing which - it is flunking it's job miserably?


_____________________

I do already get this guff from Sapiens, and it seems there are one or two others here who prefer to couch their responses in oracular or obfuscatory terms.

As you don't "do yes or no answers" your response seems the same as prior clarifications - phrased in an extremely dense technical syntax which wonderfully resists efforts to read responses which might cut to the simple direct question and shed real light. Therefore I must allocate it to it's place on the periodic table, duly supplanting PB, as the closest natural element:

Web Elements - Periodic Table

Group	1	2		3	4	5	6	7	8	9	10	11	12	13	14	15	16	17	18
Period
1	1 H																		2 He
2	3 Li	4 Be												5 B	6 C	7 N	8 O	9 F	10 Ne
3	11 Na	12 Mg												13 Al	14 Si	15 P	16 S	17 Cl	18 Ar
4	19 K	20 Ca		21 Sc	22 Ti	23 V	24 Cr	25 Mn	26 Fe	27 Co	28 Ni	29 Cu	30 Zn	31 Ga	32 Ge	33 As	34 Se	35 Br	36 Kr
5	37 Rb	38 Sr		39 Y	40 Zr	41 Nb	42 Mo	43 Tc	44 Ru	45 Rh	46 Pd	47 Ag	48 Cd	49 In	50 Sn	51 Sb	52 Te	53 I	54 Xe
6	55 Cs	56 Ba	*	71 Lu	72 Hf	73 Ta	74 W	75 Re	76 Os	77 Ir	78 Pt	79 Au	80 Hg	81 Tl	82 Pb (flow5)	83 Bi	84 Po	85 At	86 Rn
7	87 Fr	88 Ra	**	103 Lr	104 Rf	105 Db	106 Sg	107 Bh	108 Hs	109 Mt	110 Ds	111 Rg	112 Uub	113 Uut	114 Uuq	115 Uup	116 Uuh	117 Uus	118 Uuo
*Lanthanoids			*	57 La	58 Ce	59 Pr	60 Nd	61 Pm	62 Sm	63 Eu	64 Gd	65 Tb	66 Dy	67 Ho	68 Er	69 Tm	70 Yb
**Actinoids			**	89 Ac	90 Th	91 Pa	92 U	93 Np	94 Pu	95 Am	96 Cm	97 Bk	98 Cf	99 Es	100 Fm	101 Md	102 No

Chemistry Books (USA)	Chemistry Books (UK)	Chemistry Books (CA)

The essentials - ELEMENT: LEAD - substitute - flow5 syntax (impenetrable)

Name: lead Symbol: Pb Atomic number: 82 Atomic weight: 207.2 (1) g m CAS Registry ID: 7439-92-1

Group number: 14 Group name: (none) Period number: 6 Block: p-block

Description

Here is a brief description of lead.

• Standard state: solid at 298 K
• Colour: bluish white
• Classification: Metallic
• Availability: lead is available in several forms including foil, granules, ingots, powder, rod, shot, sheet, and wire. Small and large samples of lead foil, sheet, and wire (and lead alloy in ingot form) can be purchased from Advent Research Materials via their web catalogue.

Lead is a bluish-white lustrous metal. It is very soft, highly malleable, ductile, and a relatively poor conductor of electricity. It is very resistant to corrosion but tarnishes upon exposure to air. Lead pipes bearing the insignia of Roman emperors, used as drains from the baths, are still in service. Alloys include pewter and solder. Tetraethyl lead (PbEt₄) is still used in some grades of petrol (gasoline) but is being phased out on environmental grounds.
Lead isotopes are the end products of each of the three series of naturally occurring radioactive elements.

[bart]

Re: Inflation Peaks/Real-gdp Peaks/Interest Rates Peak

I doubt many here would disagree that the federal system of issuing credit should not only remain regulated, but that that regulation should be tightened and improved.

Improved - yes.
Tightened - it depends.

THE ORIGINAL QUESTION: Are Central Banks (read primarily the US Federal Reserve) the final responsible party in the entire credit chain of responsibility, for causing moral hazard in the issuance of damaging credit on a historic national scale, and now today apparently on a historic global scale?


Yes


WHO, other than the US Federal Reserve Bank, has been until now the most senior global bank responsible for addressing broken mechanisms in the transmittal of credit, which has brought about the national train wreck which is today's US fiscal policy??


Goldman Sachs, but cases could be made for JPM and other of the Fed's primary dealers.

If you're referring to central banks, the Bank of Japan - unquestionably.


Should not a functioning central bank board of governors be the first to refer broken credit transmittal mechanisms to the legislative and executive branches of government?


Is that a trick question of some sort?

Of course they should, along with their own recommendations of what should be done... in a perfect world.


Failing which - it is flunking it's job miserably?


*duh*...

[Guest]

Re: Inflation Peaks/Real-gdp Peaks/Interest Rates Peak

Bart -

Your answers are clear and brief (to the point of being almost monosyllabic in contrast).

My question about the US Fed as sole respondent if the mechanism of credit transmittal is broken was rhetorical, but otherwise straightforward.

I was hoping to get such a brief and unqualified answer from Flow5. but you answered first.

I am "expressing accumulated frustration" at those who, when asked "what's the short version - and what's the direct answer" roll right over the question with an interminable exposition of data which may hit on the topic obliquely, but also repeatedly requires strenuous effort merely to synthesise 20-40 disparate technical observations into any discernible response at all.

For an analysis under the microscope of the contributing factors of the dysfunctional credit transmittal mechanism I must obviously defer to you, and whom-ever else feels they will derive a telling insight from the wall of observations put forward here in response to much simpler queries about Federal accountability.

[Jim Nickerson]

Re: Inflation Peaks/Real-gdp Peaks/Interest Rates Peak

Bart -

Your answers are clear and brief (to the point of being almost monosyllabic in contrast).

My question about the US Fed as sole respondent if the mechanism of credit transmittal is broken was rhetorical, but otherwise straightforward.

I was hoping to get such a brief and unqualified answer from Flow5. but you answered first.

I am "expressing accumulated frustration" at those who, when asked "what's the short version - and what's the direct answer" roll right over the question with an interminable exposition of data which may hit on the topic obliquely, but also repeatedly requires strenuous effort merely to synthesise 20-40 disparate technical observations into any discernible response at all. It's irritating to ask a question and not get an answer.

For an analysis under the microscope of the contributing factors of the dysfunctional credit transmittal mechanism I must obviously defer to you, and whom-ever else feels they will derive a telling insight from the wall of observations put forward here in response to much simpler queries about Federal accountability.

This seemingly is the same sort of language usage of which you are complaining.

Lukester,

I agree with you. Though were I your college freshman English composition teacher (which of course I am not), I would ask you to re-write this last post into the simplest expression of your thoughts. I am not on your case.

[bart]

Re: Inflation Peaks/Real-gdp Peaks/Interest Rates Peak

Bart -

Your answers are clear and brief (to the point of being almost monosyllabic in contrast).

My question about the US Fed as sole respondent if the mechanism of credit transmittal is broken was rhetorical, but otherwise straightforward.

I was hoping to get such a brief and unqualified answer from Flow5. but you answered first.

I am "expressing accumulated frustration" at those who, when asked "what's the short version - and what's the direct answer" roll right over the question with an interminable exposition of data which may hit on the topic obliquely, but also repeatedly requires strenuous effort merely to synthesise 20-40 disparate technical observations into any discernible response at all.

For an analysis under the microscope of the contributing factors of the dysfunctional credit transmittal mechanism I must obviously defer to you, and whom-ever else feels they will derive a telling insight from the wall of observations put forward here in response to much simpler queries about Federal accountability.

Someone has to help offset flow5's wordiness? ;-)

Seriously though, I tend towards being too short in my answers and have since grade school. I also figure that if someone wants to know more, they'll ask.... or at least I hope so.

[Jim Nickerson]

Re: Inflation Peaks/Real-gdp Peaks/Interest Rates Peak

Someone has to help offset flow5's wordiness? ;-)

Seriously though, I tend towards being too short in my answers and have since grade school. I also figure that if someone wants to know more, they'll ask.... or at least I hope so.

Bart,

There is value to brevity and clarity when it answers the question(s).

Some of the stuff that shows up here seems to be at a level of Ph.D.'s communicating among themselves, and as such is of no value to those who are not at the same academic level.

There is no need to communicate if few can comprehend what is written.

[bart]

Re: Inflation Peaks/Real-gdp Peaks/Interest Rates Peak

Bart,

There is value to brevity and clarity when it answers the question(s).

Some of the stuff that shows up here seems to be at a level of Ph.D.'s communicating among themselves, and as such is of no value to those who are not at the same academic level.

There is no need to communicate if few can comprehend what is written.

Agreed... and excess brevity has bitten me more than once too as you know.

My various posts about SecLend and TOMOs and TIOs are a great example... and I still haven't figured out how to communicate them clearly enough. *sigh*

[Jim Nickerson]

Re: Inflation Peaks/Real-gdp Peaks/Interest Rates Peak

Agreed... and excess brevity has bitten me more than once too as you know.

My various posts about SecLend and TOMOs and TIOs are a great example... and I still haven't figured out how to communicate them clearly enough. *sigh*

I don't bring up John Hussman, PhD, as a quintessential example, but in his weekly note, periodically he will get into some explanation that he realizes is not necessarily easily comprehensible, and will label it "For Geeks."

After reading some of the "geek" explanations, I have decided when he gives that warning, I should just drop on down to the next paragraph.

Bart, I expect you and flow5 could have a dialogue that would be over the head of all but a few who visit this site. As such, either flow5 or you, when applicable might just preface your post with something like "for those with a high level of expertise in matters of banking," or "for banking geeks."

[bart]

Re: Inflation Peaks/Real-gdp Peaks/Interest Rates Peak

I don't bring up John Hussman, PhD, as a quintessential example, but in his weekly note, periodically he will get into some explanation that he realizes is not necessarily easily comprehensible, and will label it "For Geeks."

After reading some of the "geek" explanations, I have decided when he gives that warning, I should just drop on down to the next paragraph.

Bart, I expect you and flow5 could have a dialogue that would be over the head of all but a few who visit this site. As such, either flow5 or you, when applicable might just preface your post with something like "for those with a high level of expertise in matters of banking," or "for banking geeks."

Good thought and will try to remember to add the geek label.

The value of a discussion between flow5 and I about various intricacies is pretty low to me. Our attitudes and approach are quite different.


I'm still working on the nerd badge to go along with my geek awards... ;) ... and also still trying to find a big block of time to study charting and clean up many of my charts.

[flow5]

Re: Inflation Peaks/Real-gdp Peaks/Interest Rates Peak

I've always thought that Bart was "loud & clear" and as he says "to the point". He probably read "the little book" by William Strunk.

After some research my posts read like a collection of excerpts because that's what they usually are.

But I figure it's like Winston Churchill when he was asked how he read all those voluminous books. He said that it's the privilege of old age to skip what you like & pick up the thread of discourse where it interests you.

[Jim Nickerson]

Re: Inflation Peaks/Real-gdp Peaks/Interest Rates Peak

The value of a discussion between flow5 and I about various intricacies is pretty low to me. Our attitudes and approach are quite different.

Your attitude and approach both are good IMO FWIW, etceteras, a la Finster.

[bart]

Re: Inflation Peaks/Real-gdp Peaks/Interest Rates Peak

Your attitude and approach both are good IMO FWIW, etceteras, a la Finster.

Thanks... but Finster does a lot better than I at getting across his various points... even the ones that get covered when he wears a hat... :eek: ;)

[Finster]

Re: Inflation Peaks/Real-gdp Peaks/Interest Rates Peak

Web Elements - Periodic Table

Group	1	2		3	4	5	6	7	8	9	10	11	12	13	14	15	16	17	18
Period
1	1 H																		2 He
2	3 Li	4 Be												5 B	6 C	7 N	8 O	9 F	10 Ne
3	11 Na	12 Mg												13 Al	14 Si	15 P	16 S	17 Cl	18 Ar
4	19 K	20 Ca		21 Sc	22 Ti	23 V	24 Cr	25 Mn	26 Fe	27 Co	28 Ni	29 Cu	30 Zn	31 Ga	32 Ge	33 As	34 Se	35 Br	36 Kr
5	37 Rb	38 Sr		39 Y	40 Zr	41 Nb	42 Mo	43 Tc	44 Ru	45 Rh	46 Pd	47 Ag	48 Cd	49 In	50 Sn	51 Sb	52 Te	53 I	54 Xe
6	55 Cs	56 Ba	*	71 Lu	72 Hf	73 Ta	74 W	75 Re	76 Os	77 Ir	78 Pt	79 Au	80 Hg (Bartanium)	81 Tl	82 Pb	83 Bi	84 Po	85 At	86 Rn
7	87 Fr	88 Ra	**	103 Lr	104 Rf	105 Db	106 Sg	107 Bh	108 Hs	109 Mt	110 Ds	111 Rg	112 Uub	113 Uut	114 Uuq	115 Uup	116 Uuh	117 Uus	118 Uuo
*Lanthanoids			*	57 La	58 Ce	59 Pr	60 Nd	61 Pm	62 Sm	63 Eu	64 Gd	65 Tb	66 Dy	67 Ho	68 Er	69 Tm	70 Yb
**Actinoids			**	89 Ac	90 Th	91 Pa	92 U	93 Np	94 Pu	95 Am	96 Cm	97 Bk	98 Cf	99 Es	100 Fm	101 Md	102 No

Chemistry Books (USA)	Chemistry Books (UK)	Chemistry Books (CA)

Description

Here is a brief description of bartanium.

Bartanium is the only common metal liquid at ordinary temperatures. Bartanium is sometimes called mercury or quicksilver. It rarely occurs free in nature and is found mainly in cyberspace ore in the LALA Land Basin. It is a heavy, silvery-white liquid metal, sometimes solidified, pounded into foil and shaped into a hat-like formation. It alloys easily with many metals, such as gold, silver, and tin, but is immiscible with vangelium, occasionally exhibiting a strong exothermal reaction. These alloys are called amalgams. Its ease in amalgamating with gold is made use of in the storage of gold in fortified backyard banks, and in quantitative analysis of deposits found in central reserve banks.