Comments on: Annoying Bank Propaganda http://baselinescenario.com/2009/06/08/annoying-bank-propaganda/ What happened to the global economy and what we can do about it Sat, 21 Nov 2009 02:32:50 +0000 http://wordpress.com/ hourly 1 By: Monday links: uninformed traders | Investing - Thecreditcardfiles.com http://baselinescenario.com/2009/06/08/annoying-bank-propaganda/#comment-17160 Monday links: uninformed traders | Investing - Thecreditcardfiles.com Thu, 11 Jun 2009 02:52:46 +0000 http://baselinescenario.com/?p=3993#comment-17160 [...] Don’t believe bank propaganda that bank lending has held steady through the crisis.  (Baseline Scenario) [...] [...] Don’t believe bank propaganda that bank lending has held steady through the crisis.  (Baseline Scenario) [...]

]]> By: More on disaggregate bank landing | 1800blogger http://baselinescenario.com/2009/06/08/annoying-bank-propaganda/#comment-17153 More on disaggregate bank landing | 1800blogger Wed, 10 Jun 2009 23:29:57 +0000 http://baselinescenario.com/?p=3993#comment-17153 [...] the disaggregated behavior of bank lending over the last year. The first is from James Kwak at the Baseline Scenario, and the second is a new research paper by Silvio Contessi and Johanna [...] [...] the disaggregated behavior of bank lending over the last year. The first is from James Kwak at the Baseline Scenario, and the second is a new research paper by Silvio Contessi and Johanna [...]

]]> By: Mark http://baselinescenario.com/2009/06/08/annoying-bank-propaganda/#comment-17142 Mark Wed, 10 Jun 2009 20:48:41 +0000 http://baselinescenario.com/?p=3993#comment-17142 Good post at the level of detail, but isn't the real question whether loans should be growing if (as I believe) there should be a delevering? Good post at the level of detail, but isn’t the real question whether loans should be growing if (as I believe) there should be a delevering?

]]> By: More on disaggregate bank landing | Bear Market Investments http://baselinescenario.com/2009/06/08/annoying-bank-propaganda/#comment-17096 More on disaggregate bank landing | Bear Market Investments Wed, 10 Jun 2009 04:56:22 +0000 http://baselinescenario.com/?p=3993#comment-17096 [...] the disaggregated behavior of bank lending over the last year. The first is from James Kwak at the Baseline Scenario, and the second is a new research paper by Silvio Contessi and Johanna [...] [...] the disaggregated behavior of bank lending over the last year. The first is from James Kwak at the Baseline Scenario, and the second is a new research paper by Silvio Contessi and Johanna [...]

]]> By: mdoerr2000 http://baselinescenario.com/2009/06/08/annoying-bank-propaganda/#comment-17095 mdoerr2000 Wed, 10 Jun 2009 04:55:37 +0000 http://baselinescenario.com/?p=3993#comment-17095 This is totally incomprehensible. There is no way, that I, as an individual investor can hope to comprehend the complexity of the games being played. There is no place for my money except the mattress. This is totally incomprehensible. There is no way, that I, as an individual investor can hope to comprehend the complexity of the games being played. There is no place for my money except the mattress.

]]> By: Personal Money Management » Blog Archive » More on disaggregate bank landing http://baselinescenario.com/2009/06/08/annoying-bank-propaganda/#comment-17093 Personal Money Management » Blog Archive » More on disaggregate bank landing Wed, 10 Jun 2009 04:00:48 +0000 http://baselinescenario.com/?p=3993#comment-17093 [...] the disaggregated behavior of bank lending over the last year. The first is from James Kwak at the Baseline Scenario, and the second is a new research paper by Silvio Contessi and Johanna [...] [...] the disaggregated behavior of bank lending over the last year. The first is from James Kwak at the Baseline Scenario, and the second is a new research paper by Silvio Contessi and Johanna [...]

]]> By: Afternoon Reading: Saturn Deal Could be “Smartest Automotive Move of the Decade” | Blogoboro.com Blogs http://baselinescenario.com/2009/06/08/annoying-bank-propaganda/#comment-17082 Afternoon Reading: Saturn Deal Could be “Smartest Automotive Move of the Decade” | Blogoboro.com Blogs Tue, 09 Jun 2009 23:46:25 +0000 http://baselinescenario.com/?p=3993#comment-17082 [...] James Kwak becomes the latest to debunk the myth that bank lending has actually increased during the credit crisis. [...] [...] James Kwak becomes the latest to debunk the myth that bank lending has actually increased during the credit crisis. [...]

]]> By: Matthew Peter http://baselinescenario.com/2009/06/08/annoying-bank-propaganda/#comment-17079 Matthew Peter Tue, 09 Jun 2009 22:45:13 +0000 http://baselinescenario.com/?p=3993#comment-17079 James, I appreciate the hard work you and Simon put into this sight. I would love to hear your comments regarding this article by Scott Grannis over at Calafia Beach Pundit: http://scottgrannis.blogspot.com/2009/06/no-shortage-of-money-12.html It seems to me the truth lies somewhere in between, especially when a person dissects the scale of each your graphs. Look forward your response. James,

I appreciate the hard work you and Simon put into this sight. I would love to hear your comments regarding this article by Scott Grannis over at Calafia Beach Pundit:

http://scottgrannis.blogspot.com/2009/06/no-shortage-of-money-12.html

It seems to me the truth lies somewhere in between, especially when a person dissects the scale of each your graphs. Look forward your response.

]]> By: Anon239 http://baselinescenario.com/2009/06/08/annoying-bank-propaganda/#comment-17075 Anon239 Tue, 09 Jun 2009 20:53:56 +0000 http://baselinescenario.com/?p=3993#comment-17075 There have been those that have been arguing this point for a long time... have a look at this post from December 2008... http://mast-economy.blogspot.com/2008/12/no-credit-crunch-for-most-banks.html The argument is that the top elite banks were at the nexus of the crisis... some other smaller banks were affected, but the lion-share of the 9000 US banks continued to lend at record (less vocal) rates... There have been those that have been arguing this point for a long time… have a look at this post from December 2008…
http://mast-economy.blogspot.com/2008/12/no-credit-crunch-for-most-banks.html

The argument is that the top elite banks were at the nexus of the crisis… some other smaller banks were affected, but the lion-share of the 9000 US banks continued to lend at record (less vocal) rates…

]]> By: Earendil Star http://baselinescenario.com/2009/06/08/annoying-bank-propaganda/#comment-17055 Earendil Star Tue, 09 Jun 2009 17:42:55 +0000 http://baselinescenario.com/?p=3993#comment-17055 This topic clearly exemplifies the current schizophrenic attitude towards the crisis. On the one hand, the current predicament is blamed on the easy credit that developed over the past few years, fueled by historically low fed fund rates and related excess availability of liquidity, which was in turn compounded by deregulation and ensuing financial "innovation" and fraud. On the other hand, the proposed cure should be to restore the pre-Lehman credit levels and -implicitly- lending practices. It is simply absurd and if accomplished will eventually lead to something worse. Banks, although being at the root of the crisis, cannot do anything else than to revert to sound lending standards. This inevitably means reducing the availability of credit to the system, which is part of the slow and painful deleveraging process that will eventually lead us out of the crisis. The fact that banks purport to be lending more is the lesser of our problems, and should simply be treated as proof of the unfortunate tendency of these institutions to mislead and abhor transparency. Would it be preferable if all banks were to take the Fannie / Freddie path, which means requiring a non-sustainable continuous taxpayer bailout for financing an anti-economic proposition? If so, this will only lead to a renewed and even larger bubble crisis down the road. This topic clearly exemplifies the current schizophrenic attitude towards the crisis.
On the one hand, the current predicament is blamed on the easy credit that developed over the past few years, fueled by historically low fed fund rates and related excess availability of liquidity, which was in turn compounded by deregulation and ensuing financial “innovation” and fraud.
On the other hand, the proposed cure should be to restore the pre-Lehman credit levels and -implicitly- lending practices.
It is simply absurd and if accomplished will eventually lead to something worse.
Banks, although being at the root of the crisis, cannot do anything else than to revert to sound lending standards. This inevitably means reducing the availability of credit to the system, which is part of the slow and painful deleveraging process that will eventually lead us out of the crisis.
The fact that banks purport to be lending more is the lesser of our problems, and should simply be treated as proof of the unfortunate tendency of these institutions to mislead and abhor transparency.
Would it be preferable if all banks were to take the Fannie / Freddie path, which means requiring a non-sustainable continuous taxpayer bailout for financing an anti-economic proposition?
If so, this will only lead to a renewed and even larger bubble crisis down the road.

]]> By: Brooks Gracie http://baselinescenario.com/2009/06/08/annoying-bank-propaganda/#comment-17051 Brooks Gracie Tue, 09 Jun 2009 17:02:28 +0000 http://baselinescenario.com/?p=3993#comment-17051 Didn't Goldman Sachs convert to a bank in the third quarter of 2008? That would cause quite a jump in lending just by counting its existing loans. Didn’t Goldman Sachs convert to a bank in the third quarter of 2008? That would cause quite a jump in lending just by counting its existing loans.

]]> By: Störungsquelle http://baselinescenario.com/2009/06/08/annoying-bank-propaganda/#comment-17019 Störungsquelle Tue, 09 Jun 2009 11:05:53 +0000 http://baselinescenario.com/?p=3993#comment-17019 I think we won't see every detail of the problem and that's why we have to take what we get. I am not a friend of such attitude, but we can't do more. I think we won’t see every detail of the problem and that’s why we have to take what we get. I am not a friend of such attitude, but we can’t do more.

]]> By: Patrick http://baselinescenario.com/2009/06/08/annoying-bank-propaganda/#comment-17003 Patrick Tue, 09 Jun 2009 05:49:48 +0000 http://baselinescenario.com/?p=3993#comment-17003 Can you please elaborate why it is more accurate to look at flows than at levels? Why doesn't outstanding bank credit capture changes in bank behavior? Thanks. Can you please elaborate why it is more accurate to look at flows than at levels? Why doesn’t outstanding bank credit capture changes in bank behavior? Thanks.

]]> By: Bayard http://baselinescenario.com/2009/06/08/annoying-bank-propaganda/#comment-17001 Bayard Tue, 09 Jun 2009 04:56:37 +0000 http://baselinescenario.com/?p=3993#comment-17001 With the PPIP dying, and the Stress Tests failing, the banks better bolster their propaganda. Their Dooms Day scenario is near at hand, as the toxic assets become more deadly by the day. With the PPIP dying, and the Stress Tests failing, the banks better bolster their propaganda. Their Dooms Day scenario is near at hand, as the toxic assets become more deadly by the day.

]]> By: Links: 2009-06-09 - Credit Writedowns http://baselinescenario.com/2009/06/08/annoying-bank-propaganda/#comment-16996 Links: 2009-06-09 - Credit Writedowns Tue, 09 Jun 2009 04:02:24 +0000 http://baselinescenario.com/?p=3993#comment-16996 [...] Annoying Bank Propaganda - James Kwak [...] [...] Annoying Bank Propaganda – James Kwak [...]

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