Bernanke presented himself as an expert on The Great Depression; corporate media ran with it. Sadly, it seems he learned the wrong lessons. There are reasons TGD lasted as long as it did. He should have studied the period 1913-1928 instead.
True. That is where all the juice was. Actually the Great Dep was typical overhang of excess debt (WW1). The fact the Fed dropped the ball only added to the miserly. Classic deflationary spiral.
The #fed also started buying treasuries during the war, something that moved it from "real bills" which was the original premise put together by people like Henry Parker Hills. This caused the gov't to have a piggy bank to...
The Fed came into being in 1913. As early as 1920s (maybe earlier) it moved away from its core mission & N2 setting interest rates & buying securities. The Fed was supposedly created to stop panics; they increased in frequency & magnitude.
I am not quite familiar with the banking sector issue over there, but in Nigeria; most banks are facing a major cybersecurity crisis as some of the tools they use on their system are outdated, and FBI already warned about its usage in 2020
We arent dealing with that in the US (at least that we know of). However, we are looking at mass consolidation as the smaller banks have the combo of underwater commercial real estate loans and bonds that cant get loans on.
It means they cannot get access to loans since their assets are not liquid and there is no market for them. Hence it carries a lower price if anyone will give money at all.
It is like going for a loan on a house and it was worth half of what you thought it was. Either you are not getting the loan or have to accept a lot less money.
I learned my lesson in 2008. Since then, I never believe The Fed.
One of the few. Many take the Fed's word as gospel, believing the nonsense they are in control.
You are right, Bernanke had some major blunders back then. They were claiming all was well going into Lehman.
Bernanke presented himself as an expert on The Great Depression; corporate media ran with it. Sadly, it seems he learned the wrong lessons. There are reasons TGD lasted as long as it did. He should have studied the period 1913-1928 instead.
True. That is where all the juice was. Actually the Great Dep was typical overhang of excess debt (WW1). The fact the Fed dropped the ball only added to the miserly. Classic deflationary spiral.
The #fed also started buying treasuries during the war, something that moved it from "real bills" which was the original premise put together by people like Henry Parker Hills. This caused the gov't to have a piggy bank to...
The Fed came into being in 1913. As early as 1920s (maybe earlier) it moved away from its core mission & N2 setting interest rates & buying securities. The Fed was supposedly created to stop panics; they increased in frequency & magnitude.
...siphon from the private sector. When the buying died down, banks turned to private lending at the same rate. Oops.
Listen to Task 👂👈
Or dont. Most people disagree with me. Of course, most having delved into it like I have so there is that.
I am not quite familiar with the banking sector issue over there, but in Nigeria; most banks are facing a major cybersecurity crisis as some of the tools they use on their system are outdated, and FBI already warned about its usage in 2020
We arent dealing with that in the US (at least that we know of). However, we are looking at mass consolidation as the smaller banks have the combo of underwater commercial real estate loans and bonds that cant get loans on.
So that means they are operating with money they do not own and still dealing with real estates with loans
It means they cannot get access to loans since their assets are not liquid and there is no market for them. Hence it carries a lower price if anyone will give money at all.
It is like going for a loan on a house and it was worth half of what you thought it was. Either you are not getting the loan or have to accept a lot less money.
But they are almighty. 🤣😂
Amazing that anyone listens to these clowns.
That's really sad.