Random Feed wrote an interesting post today on
Here’s a quick excerpt
MIKE WHITNEY Counterpunch Sunday, Oct 11th, 2009 The relentless financialization of the economy has resulted in a hybrid-system of credit expansion which depends on pools of loans sliced-and-diced into tranches and sold into the secondary market to yield-seeking investors. The process is called securitization and it lies at the heart of the current financial crisis. Securitization markets have grown exponentially over the last decade as foreign capital has flooded Wall Street due to the b

Share and Enjoy:

Read the rest of this great post here

Random Feed wrote an interesting post today on
Here’s a quick excerpt
“Dead Man Walking” by Mike Whitney “Credit is everything. Without credit expansion there’s no recovery because there’s no pick-up in overall demand. But credit growth is going backwards. The banks have tightened lending standards and the pool of credit-worthy applicants has vanished. Bank lending is off 14 per cent since October 2008. Private credit is presently decreasing at a 10.5 per cent annual rate. The situation is getting worse, not better. From the UK Telegraph: “Both bank credit

Read the rest of this great post here

Random Feed wrote an interesting post today on
Here’s a quick excerpt
That was then. Credit is everything. Without credit expansion there’s no recovery because there’s no pick-up in overall demand. But credit growth is going backwards. The banks have tightened lending standards and the pool of credit-worthy applicants has vanished. Bank lending is off 14 per cent since October 2008. Private credit is presently decreasing at a 10.5 per cent annual rate. The situation is getting worse, not better. From the UK Telegraph: “Both bank credit and the M3 money supp

Read the rest of this great post here

Random Feed wrote an interesting post today on
Here’s a quick excerpt
MIKE WHITNEY Counterpunch Monday, Sept 14th, 2009 The slight rebound in housing looks a lot different when one considers how much the Fed is meddling in the market. Fed chair Ben Bernanke has purchased $240 billion in US Treasuries to keep long-term interest rates artificially low while–at the same time–buying $740 billion in Fannie Mae and Freddie Mac mortgage-backed securities (MBS) to provide the financing for new home buyers. It’s the double-whammy; and that’s not all. Bernanke plans

Share and Enjoy:

Read the rest of this great post here

Random Feed wrote an interesting post today on
Here’s a quick excerpt
By: Mike Whitney Aug 30, 2009 recent poll shows that most economists now believe that the recession, which began in December 2007, will end in the third quarter of 2009. There’s been an uptick in manufacturing and consumer confidence, and the decline in housing prices appears to be flattening out. Unfortunately, the return to positive GDP will likely be short-lived. The current surge in production is mainly the result of President Obama’s fiscal stimulus and the rebuilding of inventories th

Share and Enjoy:

Read the rest of this great post here