Comments on: Housing starts and 10 year tsy rates

By: Winslow R.

Winslow R. — Wed, 18 Nov 2009 05:49:32 +0000

scroll towards bottom of page to see notes

By: Winslow R.

Winslow R. — Wed, 18 Nov 2009 05:46:14 +0000

They do this from time to time, last big one was in May.

http://www.federalreserve.gov/releases/h8/h8notes.htm

Missed it this time. Thanks for pointing out.

By: Matt Franko

Matt Franko — Wed, 18 Nov 2009 00:18:15 +0000

Winslow, From your Fed link:
“..Domestically chartered commercial banks acquired $84.5 billion in assets and liabilities of nonbank institutions in the week ending November 4, 2009. The major asset items affected were: Treasury and agency securities, mortgage-backed securities (MBS), $2.6; commercial and industrial loans, $1.8; real estate loans, revolving home equity loans, $6.4; real estate loans, closed-end residential loans, $76.3;…”
It reads like the banks just took some residential loans off of some non-banks (CIT?). Is this the way the Fed usually describes an expansion of bank credit in this release? I dont follow this release regularly (but I know you do thanks!) and am not familiar with the “jargon” here. Resp,

By: Winslow R.

Winslow R. — Tue, 17 Nov 2009 21:29:35 +0000

Bank lending did turn up last week, first time in months though not a trend……. yet.

http://www.federalreserve.gov/releases/h8/current/default.htm

By: warren mosler

warren mosler — Tue, 17 Nov 2009 13:51:14 +0000

Yes,

Feeling more and more like a zero rate policy is highly deflationary which is a good thing as it allows taxes to be that much lower for a given amount of govt spending.

But when the govt doesn’t understand that and keeps deficits relatively low Japan happens

By: William Naphin

William Naphin — Tue, 17 Nov 2009 12:28:58 +0000

Yes. Bernanke was certainly dovish yesterday from a future rate expectations standpoint. And he tried to have it both ways on the currency. All were reported and forwarded on bloombergs ad nauseum. But no one mentioned this: *BERNANKE SAYS DEMAND FOR CREDIT HAS `FALLEN SIGNIFICANTLY’ In my book he basically admitted yesterday that monetary policy has been a failure, and falling real rates on TIPs say the same thing. They don’t forecast inflation (real rates rise in a generalized inflation)per the breakevens, but instead imply little or no demand for credit.