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Westcoaster

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  • What About Ebbing U. S. Economic Leadership? [View article]
    The E-Cig.

    Great Chinese invention.
    Apr 24, 2015. 02:10 PM | Likes Like |Link to Comment
  • New Law Of Lending And Borrowing [View article]
    Yes, this is correct.

    Interesting article and theory.

    Banks are capital and liquidity constrained irregardless of the economic cycle.

    Regulators make sure.

    But they are all run by humans and humans tend to all think alike. Interestingly regulators will never tell a bank they "can't" make a loan. They just beat them up afterwards.
    Apr 24, 2015. 01:18 PM | Likes Like |Link to Comment
  • 'No Drama Obama' Economic Recovery Continues [View article]
    This and the probable Supreme Court upholding Obamacare helps Hillary's chances a bunch.
    Apr 16, 2015. 02:34 PM | 2 Likes Like |Link to Comment
  • QE: The Foundation For Continued Higher Asset Prices [View article]
    Great Article.

    You make a lot of simple logical explanations for what is happening.

    I wish the tax code make dividends more advantageous to companies than share buy backs.

    One would think that might help aggregate demand more.
    Apr 16, 2015. 02:29 PM | Likes Like |Link to Comment
  • The Budget Constraint Does Not Mean The Government Will Pay Off Its Debt [View article]
    Interesting article.

    In the end if all countries are following some sort of MMT don't exchange rates end up being the item that floats.

    So it's no longer bond vigilantes one needs to worry about but FX traders?

    If so, could I ask a stupid question?

    If every country in the world has a computer and they are all hooked up on SWIFT or some system that knows where all of the money is, say Iran or North Korea, or even China starts floating in this system, ie they hook up to SWIFT.

    Every country can create as much money as they like, right? So in the end is the only check on this foreign exchange rates?

    I just can't quite get my head around a country like China or Iran creating as much money as they like and then they get to hook up to the system?

    Do currency swap arrangements have anything to do with this?
    Apr 14, 2015. 03:01 PM | Likes Like |Link to Comment
  • Canadian Banks Sheltered From The Housing Bubble [View article]
    Very interesting.

    Why does it always seem to overshoot by 10% or 15% either direction?

    If you say 75% is where it should be I bet it hits 65% before it eventually turns back around to get to the 80 85%
    Apr 7, 2015. 01:40 PM | Likes Like |Link to Comment
  • The Housing Bubble And The Lesser Depression: Either The Very Sharp Dean Baker, Or I, Am Hopelessly Confused [View article]
    Question who's smarter....

    1. The Social Security recipient who becomes an ex-pat in Vietnam, claims SS benefits, and lives like a king. God bless that crippled Roosevelt.

    2. The Federal lobbyist who argues that smoking is safe and more laws should enforce free trade.

    3. The new job applicant that while looking for work, also applies for disability.

    4. The blue collar worker who went to tech school and now competes with 6 dollar a day labor.

    5. The HSBC banker who takes Mexican drug cash to stuff into their bank and meet their deposit goals.

    6. The Alabama teacher who helps her students cheat on tests.

    7. The tenured College Professor. Who argues for free trade and competition for all, except themselves, because for some reason their job is just too important to have to submit to competition.

    Strange world we live in. Lot's of angles and ways to compete. Just not what it looks like to most. Any votes out there?
    Apr 2, 2015. 12:06 PM | 2 Likes Like |Link to Comment
  • Reading The Federal Reserve's Tea Leaves/Dot Plots [View article]
    They may have the numbers wrong but they are going to stick to a plan.

    A great plan.

    In their mind they dropped rates to help the economy. It worked but a lot of other things happened too. Does anyone really believe higher rates will force folks off food stamps or disability? Does any one think prime is tied to the middle class paying more for the ACA?

    Now, ignore a lot of other things, and they just think they better raise rates, because they can't, or won't drop them any further…

    Why not….it's hard to be in charge and do nothing. They think it will be fun to raise a quarter point then another then another then another then another then another. Oh, we broke it…then at least they can lower them again….

    These are really serious folks…

    A few increases may or may not do anything. That is what they hope for.

    Such a strange place to be as a leader. Do something that they hope does nothing…
    Mar 31, 2015. 12:11 AM | Likes Like |Link to Comment
  • Former UCB Chief Credit Officer Convicted Of Securities Fraud And Other Corporate Fraud [View instapost]
    Thank you for this update.

    I know stories of many failed banks. Some of the bankers got jail time and some just lost a lot of money.

    I hope the public realizes that justice is being served to these crooks.

    Basically, if you were stupid you get to go home with less money. If you lied, concealed, or inflated things you are in trouble.

    It's interesting that the Justice Department is willing to only fine large scale money laundering without jail time.

    They seem to view covering up a bad loan as worse than taking a suspicious deposit. I'm not saying they are wrong on this, just seems this way.
    Mar 30, 2015. 11:52 PM | Likes Like |Link to Comment
  • Commercial Banks Vs. Financial Intermediaries [View instapost]
    Thanks for the link to this article.

    It's dated but it's proposal is what has happened during this latest contraction.

    Rates moved lower and folks got skittish and moved their money out of 1% time deposits into Non-Interest bearing accounts. As this article mentions that helps banks.

    But that is not same as saying CB's don't need deposit regulations.

    I didn't know much about Req Q stuff. But the regulators actually made sure that "bad" banks didn't pay more for deposits than any "good" bank in their market. The affect of that was, a bad bank couldn't just pay up to buy local deposits to stop a run. So as you have pointed out many times, the regulators are following this 1966 article.

    And they fret about "Core" deposits.

    Thanks for your explanation about Money Markets.

    I appreciate all of your wisdom…
    Mar 30, 2015. 11:32 PM | 1 Like Like |Link to Comment
  • Investment In FinTech Takes Off! [View article]
    John,

    Very glad you pump LC so much...

    Check out

    http://bit.ly/1ytayXl

    If you think local banks can't compete with LC lending at 12.5% to FICO 700 folks you are wrong.

    LC lent when banks didn't and at loss rates of 5 to 10 times higher than local banks.

    Now with all of their capital they want to only make loans to FICO 700. These FICO 700 folks are stupid to borrow at 12.5.

    Just my thoughts.

    If teenagers in the future would rather borrow money at 12.5% on the LC than go down to their local bank and borrow at 5%. Then good for LC.
    Mar 30, 2015. 01:20 PM | Likes Like |Link to Comment
  • Commercial Banks Vs. Financial Intermediaries [View instapost]
    Salmo,

    Thank you for your articles. I can follow your train of thought better here than through your comments.

    You propose a radical change in how commercial banks are actually regulated today.

    At an individual bank level, regulators worry about capital and liquidity.

    I believe Liquidity ratios need deposits because some of these can be held as cash. Banks need to fund their withdrawals. If they can't for one second they are shut down. IE runs on banks are the regulators indicator that a bank has lost the public's confidence.

    If I follow your proposal deposit runs wouldn't exist. I think regulators would be very afraid to loose this tool to judge banks by.

    Also if I may ask a stupid question. I thought Money Market funds were levered 4x. Is this through borrowed funds or through the process of the credit creation? I think your answer will be they are non-banks.

    Thanks for this interesting article, I would like to research the Fed policies you so criticize. But now knowing you are hoping for banks to drop deposit constraints I can follow your logic easier.

    Thanks again....
    Mar 30, 2015. 01:10 PM | 1 Like Like |Link to Comment
  • US Banks Are Giving Guidance On Doing Business With Marijuana Dispensaries [View instapost]
    I don't understand how any of these businesses file their tax returns.

    I was under the impression that illegal Federal businesses couldn't claim any deductions at all.

    Isn't that how they got Capone?

    Strange world we live in....
    Mar 19, 2015. 01:29 PM | Likes Like |Link to Comment
  • Recent Spike In Rates - What Does It Mean For Stocks And Bonds? [View article]
    The strangest moves are the flattening of the yield curve.

    ARM rates are up.
    30 year rates down.

    Believe this says the market is betting short term rates rise in the short term.

    Negative Euro rates are very strange. Nestle gets paid to borrow money?

    These are bigger issues.
    Feb 23, 2015. 11:47 AM | Likes Like |Link to Comment
  • The Federal Reserve And Borg Assimilation [View article]
    Good. They are starting to question the wisdom of snuffing this recovery.

    Next could they lower rates a bit more by lowering IOER's?

    Thanks
    Feb 16, 2015. 02:16 PM | Likes Like |Link to Comment
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