Student Loans Replacing Mortgages As The Credit Cycle Peaks

Courtesy of a link on Jesse’s blog, I’d like to link you to a blog post on Scientific American, of all places, that puts the Great Financial Crisis in a mathematical and human perspective.  While I would have chosen a title that reflects that ultimately the collapse came from greed more than an equation, here [...]


DocComment: Same Old Same Old

More and more late-cycle financial news is emanating from the U.S.  From the Financial Times tonight are found the following headline and sub-headlines:

 US credit card ABS sales soar Securitisation experiences revival ‘Slice and dice’ credit card deals return Wall St engineering revival of CDS Bundled US car loan deals enjoy comeback Riskiest US bonds enjoy strong [...]


Europe Joins America in Going for Growth

I said in a recent post that I thought that austerity fatigue had set in in Old Europe.  Here’s confirmation, from

European leaders declared a turning point in the Greece-fueled debt crisis, shifting their focus away from the budget-cutting spree that has dominated two years of rescue operations.

With a second Greek aid package [...]


Banks To OWS: Please Move Your Money


The funny thing about the populist Move Our Money movement is that the banks really don’t want deposits right now because they are awash in cash and don’t know what to do with it.

In an article from American Banker, it was revealed that:

“The industry certainly doesn’t need more deposits today,” Fred Cannon, the [...]


Consumers Choke, Credit Shrinks

Consumers choked on the idea of taking down more debt in August, and consumer credit “unexpectedly” contracted 4.6%. Revolving credit which is mostly credit card debt contracted 3.4% and non-revolving credit, mostly autos and student loans, shrank 5.2%. 

This is the first decline in 9 months of credit growth.

I haven’t heard a lot [...]


Fed: Consumer and Mortgage Lending Remains Weak

The monthly Fed survey of bankers and lending says that in July lending conditions remained largely unchanged–that is, relatively tight:

While banks have been easing up since the financial crisis, lending standards remain tighter than they were before the recession. For most loan categories, the survey found large numbers of banks reporting that their current [...]


The Trend Is Your Friend Till It Ends

What countervailing forces exist to break the trend that is apparent in the charts below?  Note that these charts reflect the same trend.



The Small Bank Problem: Why We Are 40,000 Properties Away From Recovery

This article is one of a series of occasional white papers from the Daily Capitalist taking a detailed look at specific issues affecting the economy. In this paper we discuss bank credit, banks and their real estate loans, the so-called “liquidity trap,” and why the economy is not growing. [...]


Bernanke Implies More Market Pain Before QE3

Ben Bernanke spoke today before Congress; click HERE for his prepared remarks.  The markets appear to have seized on the paragraph about potential further easing of monetary conditions.  They appear to be ignoring that the text spends one paragraph on easing but two paragraphs on potential tightening.  Earlier in the text, he reiterates the Fed’s [...]


Credit Conditions In U.S. Banks: Still Tight

The Office of the Comptroller of the Currency (OCC) does an annual survey of its banks to determine credit conditions. Their report was just released and, as expected, there has been some easing of credit in the big banks, but little or no change in the small and regional banks where credit remains relatively tight.



Understanding The Eurozone Greek Crisis

Reuters has an excellent summary of the issues the eurozone faces with Greece (Hat tip Zero Hedge). Today at 1:00 p.m. PDT (5:00 eastern) PM George Papandreou faces a no-confidence vote in parliament. It is going to be significant either way.


* Confidence vote in Greek parliament at 2100 GMT

* Representatives from “troika” [...]