Re: comments on kohn speech

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Posted by Winslow R. (71.138.60.22) on 23:00:51 11/29/07

In Reply to: comments on kohn speech posted by warren mosler

: 'People can misinterpret almost anything so that it coincides with
: views they already hold. They take from art what they already
: believe.' -SKubrick

With that quote in mind....

While congress restricts China/Saudi Arabia/Russia etc. from purchasing ports etc. which would place assets in 'minimal' tax paying foreign government hands, they instead allow China/Saudi Arabia/Russia etc. to purchase interest in banks/Blackstone and tsy secs.

Bank residual/outstanding loans are at least a 34 year high, at 2x the 1973 level. Have capital requirements changed? U.S. commercial banks should be able to take on additional 9 trillion in debt without capital requirements being a problem? Liquidity to expand is not a problem.

Winners:
Big bankers assets will grow as big banks (BofA, Citigroup) absorb nonbanks and smaller banks (Countrywide,Etrade).

Losers:
Nonbank and small bank stockholders lose as big banks repossess 'offsheet' entities at firesale prices. This will likely become the largest bank repossession since the Great Depression.

U.S. Congress/England keep out foreign competition for assets. China protests by restricting warships docking yet buys chunk of Blackstone. Abu Dhabi buys chunk of Citigroup. The Fed/Treasury provides just enough liquidity to allow for this 'proper' market functioning.

Large majority of citizenry keep their heads above water as Fed waits for nonbank repossession 'markets' to clear and there is no real demand for political change in 2008 and yet another Clinton wins. Small minority of citizenry never realize the large part they played as they once again become bankrupt renters.

Loans outstanding
http://www.federalreserve.gov/releases/h8/data/m/b1001a.txt

Bank residual
http://www.federalreserve.gov/releases/h8/data/m/b1091a.txt

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Subject:	Re: comments on kohn speech
Comments:	: : 'People can misinterpret almost anything so that it coincides with : : views they already hold. They take from art what they already : : believe.' -SKubrick : : With that quote in mind.... : : While congress restricts China/Saudi Arabia/Russia etc. from purchasing ports etc. which would place assets in 'minimal' tax paying foreign government hands, they instead allow China/Saudi Arabia/Russia etc. to purchase interest in banks/Blackstone and tsy secs. : : : Bank residual/outstanding loans are at least a 34 year high, at 2x the 1973 level. Have capital requirements changed? U.S. commercial banks should be able to take on additional 9 trillion in debt without capital requirements being a problem? Liquidity to expand is not a problem. : : Winners: : Big bankers assets will grow as big banks (BofA, Citigroup) absorb nonbanks and smaller banks (Countrywide,Etrade). : : Losers: : Nonbank and small bank stockholders lose as big banks repossess 'offsheet' entities at firesale prices. This will likely become the largest bank repossession since the Great Depression. : : U.S. Congress/England keep out foreign competition for assets. China protests by restricting warships docking yet buys chunk of Blackstone. Abu Dhabi buys chunk of Citigroup. The Fed/Treasury provides just enough liquidity to allow for this 'proper' market functioning. : : Large majority of citizenry keep their heads above water as Fed waits for nonbank repossession 'markets' to clear and there is no real demand for political change in 2008 and yet another Clinton wins. Small minority of citizenry never realize the large part they played as they once again become bankrupt renters. : : : : Loans outstanding : http://www.federalreserve.gov/releases/h8/data/m/b1001a.txt : : Bank residual : http://www.federalreserve.gov/releases/h8/data/m/b1091a.txt : : : : : : :
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