It’s probably too early to say. The Australian Office of Financial Management continues to support the market for non-bank lenders. Non-bank lenders have to fund new loans via securtisation. Without the AOFM’s backing, you have to wonder how many first home buyers would have been able to find housing finance.
December 21st, 2009 | Dan Denning | 25 comments | ContinuedAll Posts Tagged With: "quantitative easing"
Optimists Expect Mild Inflation in a Decent Recovery
Pessimists fear the feds may have waited too long; they think they see higher rates of inflation coming. Here on the back page we see no recovery…nor any inflation.
December 7th, 2009 | Bill Bonner | 3 comments | Continued
Chinese Government Expected to Sign Off on Second Stimulus Package
Chinese bank lending and credit growth is already through the roof. Last year’s $685 billion stimulus program sent fixed asset investment in China much higher. It was, by most accounts, hugely supportive of resource prices, and thus most welcome in Australian resource circles.
December 4th, 2009 | Dan Denning | 8 comments | Continued
More Quantitative Easing by Fed has Markets Spooked About Inflation
Bullard said, that, “If the economy came in very weak, let’s say, in 2010, weaker than expected, we would have the option of doing further quantitative easing.” The Fed would do this through additional asset purchases, presumably with more, uh, “money” it created.
November 24th, 2009 | Dan Denning | 43 comments | Continued
Homebuilding Goes Down While Economy Gathers Strength
Meanwhile, the news two days ago was that homebuilding took a dive in October. Work began on 11% fewer houses than the month before.
November 20th, 2009 | Bill Bonner | 1 comment | Continued
China Will Rule the Business World While America Finds Itself Heavily in Debt
The 19th century belonged to Britain, the 20th century belonged to America and in the 21st century, China will rule the business world. Whether you like it or not, this transition is already underway…
November 18th, 2009 | Puru Saxena | 10 comments | Continued
U.S. Government Must Roll Over $3.4 Trillion in Debt Over Next Four Years
And if America can’t find anyone willing to finance its deficits, what then? Well, the luxury of issuing debts in the currency you also print is that you can print money to pay for them. Technically, you can never become insolvent when you enjoy this privilege. The Fed, for example, can create new money to buy debt issued by the Treasury, funding deficits ad infinitum.
November 3rd, 2009 | Dan Denning | 5 comments | Continued
Feds See Every Emergency as an Opportunity
So far, the feds are the only real winners from any of these crises. Federal outlays, as a percentage of GDP have shot up from less than 20% of GDP in 2000 to more than 26% in 2009.
October 28th, 2009 | Bill Bonner | 0 comments | Continued
Is It Really the End of the Dollar Carry Trade?
But as you’ll learn today, the bankers, the Fed, the media…the whole lot of them…have learned nothing from last year. The hangover was just beginning to set in, so everyone began drinking again heavily. And now the party is wild and out of control. Even the cops are drunk.
October 27th, 2009 | Dan Denning | 4 comments | Continued
A Recovery of Some Kind in Global Trade
“Global trade rose at its fastest rate in more than five years in July,” The Financial Times reports, “suggesting the economic recovery is feeding through into commerce.”
September 30th, 2009 | Bill Bonner | 1 comment | Continued