Credit Crisis - Is a Myth
 

New Celent report on flawed assumptions about the credit crisis

New York, Dec. 15, 2008 -- US policymakers have implemented an unprecedented range of tools to fight the credit crisis. However, it appears that many of their assumptions regarding the nature of the crisis are not supported, or even flatly contradicted, by the available data. Many measures of lending have actually increased during the crisis and are even at record levels.

This reports examines some key assumptions being made by leading US policymakers regarding the credit crisis. In particular, comments made by the two leading policymakers, the chairman of the Federal Reserve, Ben Bernanke, as well as the secretary of the US Treasury Department, Henry Paulson, are compared with publicly available data.

In many cases, it appears that these policymakers' assumptions regarding the credit crisis are incorrect. Far from seeing a tightening of credit, a number of measures show that credit has expanded, and Celent finds that the lending markets are in surprisingly good health. Data published (in most cases by the Federal Reserve itself) show that:

Overall lending by US banks is at a record high and has increased during the credit crisis.
Interbank lending is at record highs and has increased during the credit crisis. Consumer credit is at record highs and has increased during the credit crisis.
Commercial paper markets are operating within their historical norms.
Lending by banks to businesses is at record highs and has been growing rapidly.
Municipal bond markets are operating within their historical norms.
Deposits at banks have shown a substantial increase since the start of the credit crisis.
"It appears that policymakers are making a variety of mistakes regarding the current financial crisis. If that is the case, the policy tools that they are employing may very well be the wrong ones," Octavio Marenzi, head of Celent and author of the report.

I doubt that and where did you get this info? url please

- no shit

Thats all BS :321GFY

Well, they surely aren't buying houses in my neck of the woods....

This seems to be the source: http://www.celent.com/PressReleases/...editCrisis.asp

It's the intro to a 30 page report available for members.

yep and toyota reported over a billion dollar loss because people are just buying up cars

aGREED.
:2 cents:

Source seems a bit fishy.

But I don't doubt the real nature of the crisis was overblown so the banks could get their money faster. Seems like a pretty normal thing to do.

Also don't forget, before the "credit crisis" credit was soooooooooooo easy that even returning to normal would seem like a crisis. Many of these firms couldn't have operated on normal credit lines so while it may have been a crisis for them, it may not have been so bad by normal measures.

based on the same bullshit report.Toyota is losing a billion dollars because people cant get credit to buy cars. Amex is cutting good customers lines left and right.

http://www.bizjournals.com/seattle/s...15/focus2.html
http://www.bloomberg.com/apps/news?p...xxA&refer=home
http://uk.reuters.com/article/oilRpt...NA275120081222
http://www.mercurynews.com/business/ci_11273180
http://www.reuters.com/article/gc04/...4BF6ZQ20081216

Here's the article from American Banker


http://www.americanbanker.com/usb_ar...0812158UB27A7C

I don't know if this data they are talking about is false, old or simply disinformation. What I DO know is that I have neighbors trying to sell their homes and can't because no one is getting loans approved. Not only that, several cards I have raised the APR and are getting stingy. I have a card I paid about a week late recently and they were on my ass like that fucking paper boy in that "Better Off Dead" movie. One of my other cards got lowered. This is just what I have seen personally, there is more going on out there.

It is just fucking logic. With any economic crisis, there will always be a tightening of sphincters. Add on top of that record levels of unemployment. The people with the most to lose are those in Credit/Lending. When people can't make a buck, can't find a job or just lost one, who is gonna pay the bills? You're gonna see credit lenders with a whole heap full of nothing.

The average Joe losing his job and suffering the most financially does'nt have a savings or a nest egg to rely on. These are the credit lenders bread and butter, the buy now pay later crowd. Look where it has got us. This whole thing IS about credit. I don't understand why people can't see that.

Who knows, maybe I got it all wrong...

:2 cents: