The consumers can’t really go back to borrowing, can they? Nope. Not without digging themselves deeper in the hole…or actually earning more money.
April 6th, 2010 | Bill Bonner | 0 comments | ContinuedAll Posts Tagged With: "credit"
Feds Say Don’t Worry About the Depression
Instead of allowing things to settle down, the feds are doing all they can to keep them stirred up. Amid the foam and splash, nobody knows what is really going on.
December 14th, 2009 | Bill Bonner | 2 comments | Continued
Should Foreigners Invest in Argentina?
“Much of the world is going through a downswing of the credit cycle. Argentina doesn’t have and didn’t have much credit. So it will be spared the big problems. But it sells farm produce to the rest of the world.
November 16th, 2009 | Bill Bonner | 0 comments | Continued
We Don’t Expect to See Australian Banks Suddenly Keen to Expand their Loan Books
Maybe this will sound like a bunch of whining by the end of the week. After all, three of the big four Aussie banks will report results this week. There will be billion dollar cash profit figures tossed around. But as we said last week, the earnings performance of financial firms in the last six months is a sham.
September 28th, 2009 | Dan Denning | 5 comments | Continued
At a Time When We Are Drowning in Debt, We Are Also Out of Money
When a debtor is out of money, he has no ability to repay. And when a creditor has borrowers who are out of money, the creditor has no income. No earnings. No power to make better loans.
September 17th, 2009 | Bill Jenkins | 3 comments | Continued
Gold and its Poorly Understood Historic Role in the Financial System
The burden of today’s Daily Reckoning , then, is to remind these nattering nabobs of negativism that gold is not anyone else’s debt. It is not anyone else’s liability. It cannot be created with a few keystrokes. And for thousands of years, millions of people from all walks of life have been happy to use it as money because of its unique features…
September 15th, 2009 | Dan Denning | 15 comments | Continued
Bedford Springs, the Luxury Resort
“Delightful mountain retreat, really. An escape from the bad air and worse sanitation of old east coast cities. A necessary water stop on the Pennsylvania Railroad. Giant old building, with many a fine room – those walls have some stories to tell…
September 3rd, 2009 | Bill Bonner | 0 comments | Continued
Feds Have Economy on Life Support
There was a crash and credit crunch at the end of last year. Then, the feds panicked. They fought back with monetary and fiscal stimulus. Rates were cut to nearly zero. The Fed flooded the system with cash and easy credit – buying up Wall Street’s bad investments…propping up bad banks…and guaranteeing trillions worth of bad debt.
July 16th, 2009 | Bill Bonner | 0 comments | Continued
Saving Money, Not Spending it, is the Key to Getting Wealthier
Saving money gives you capital. And it’s capital accumulation – in the form of factories, roads, ships, buildings, machines…and raw savings – that gives people the ability to produce more. It may take a man with a shovel a whole day to dig a decent grave.
July 13th, 2009 | Bill Bonner | 0 comments | Continued
The Bottom of This Society’s Ability to Process Reality
For now, the “bottom” is in – that is, the bottom of this society’s ability to process reality. It may continue for a month or so, but events are underway that are beyond the command of personalities. We’re done “doing business” in all the ways that we’ve been used to…
May 20th, 2009 | James Howard Kunstler | 16 comments | Continued
The Greatness of a Depression is Commensurate to the Government’s Efforts to Prevent It
“The crisis did not come about because we issued too little money but because we created economic growth with too much money, and it was not sustainable,” explains Germany’s chancellor. She went on to suggest that maybe we shouldn’t repeat the errors of the past.
May 4th, 2009 | Bill Bonner | 5 comments | Continued
Australia to Borrow as Much as $300 billion
In February the government raised its borrowing ceiling from $75 billion to $200 billion. Last week, Finance Minister Lindsay Tanner said the bleak IMF report highlighted the big revenue gap in Australia’s budget. He said Australia might have to raise its debt ceiling to $300 billion. This is the nice thing about being a sovereign government. A household cannot arbitrarily vote itself the power to go deeper into debt…
April 27th, 2009 | Dan Denning | 9 comments | Continued
Policy Makers and the Depression
The upside of a severe and painful depression is that the much needed adjust in the economy would finally happen. The flow of credit to productive enterprise and real risk-taking (value creating) activities could resume.
April 23rd, 2009 | Dan Denning | 25 comments | Continued
Planet Death Star
Kevin Rudd is headed over to America next month to speak with Barrack Obama about climate change, the global financial system, and others ways to save the world and improve on human nature. Perhaps he might ask him if America’s US$1.75 trillion annual deficit for next year should cause global investors to worry about America’s credit quality.
February 27th, 2009 | Dan Denning | 4 comments | Continued
Bunch of Turkeys
A bunch of turkeys have hijacked our monetary system and all they know is how to print money. Rather than let the market clear itself out, central banks continue to use taxpayers’ money to bail out insolvent institutions. This brilliant strategy has NEVER worked in the past and it will not work this time around. Instead of robbing innocent people of their savings, the establishment must allow the weak banks to go bust…
February 26th, 2009 | Puru Saxena | 3 comments | Continued
