A Spillover of Testimony
Bennie & The Fed's report to Congress... Nattering in Italics.
The slower pace of economic growth in recent quarters reflects the ongoing adjustment in the housing sector. Gasp, economic spillover from housing?
Over the past year, home sales and construction have slowed substantially and house prices have decelerated. Really, do ya think?
Sales should ultimately be supported by growth in income and employment.
But real income is eroding and savings is negative. Bennie is hoping for some good paying jobs to magically appear.
Real consumption expenditures appear to have slowed last quarter... Oh Bennie, the housing ATM MEW spigot got shut off.
Consumption outlays are likely to continue growing at a moderate pace, aided by a strong labor market.
Bennie's increasing PCE will be due to STAGFLATION, he pray's for corporate America to spend and hire, HA!! Those turncoats will when Hell freeze's over!
Sizable increases in food and energy prices have boosted overall inflation and eroded real incomes in recent months. Thats what I call "growth" in income.
One risk to the outlook is that the ongoing housing correction might prove larger than anticipated, with possible spillovers onto consumer spending.
Bennie, what did you say earlier? Please connect the dots...
If inflation were to move higher for an extended period and that increase became embedded in longer-term inflation expectations,
the re-establishment of price stability would become more difficult and costly to achieve.
I guess Bennie means that in the last 5 years...
prices for just about anything and everything outside of imported Chinese durables and computer related equipment have skyrocketed to absurd levels.
AKA prices have been anything but stable for some time now and if the energy stagflation keeps permeating the supply chain, we are really screwed.
The recent rapid expansion of the subprime market was clearly accompanied by deterioration in underwriting standards and, in some cases, by abusive lending practices and outright fraud.
An honest statement. But along those lines...
What follows can be found filed under F for FED or F*CKED, as in no subprime spillover into the banking system or economy...
Rising delinquencies and foreclosures are creating personal, economic, and social distress for many homeowners and communities--problems that likely will get worse before they get better.
Alrighty then, Bennie finally screams UNCLE & admits that the subprime debacle has effected the economy and things are going to get worse.
FYI... CIT Group , the largest independent commercial finance company in the U.S., reported an unexpected $127M Q2 loss and said it's getting out of home lending.
From Bloomberg:
JPMorgan failed to sell $1.15B of bonds for Memphis, Tennessee-based ServiceMaster Co. on July 3.
JPMorgan, #3 U.S. bank, is among lenders that have been saddled with at least $11 B of high yield bonds and loans they haven't been able to readily sell.
JPMorgan Chase CEO Jamie Dimon said demand for leveraged buyout debt is drying up and banks may be left holding more loans that they can't sell.
Remember now, Bennie said no spillover into the economy, and no spillover into banking, isn't that right George? Which way did he go? George? Which way did he go?
The slower pace of economic growth in recent quarters reflects the ongoing adjustment in the housing sector. Gasp, economic spillover from housing?
Over the past year, home sales and construction have slowed substantially and house prices have decelerated. Really, do ya think?
Sales should ultimately be supported by growth in income and employment.
But real income is eroding and savings is negative. Bennie is hoping for some good paying jobs to magically appear.
Real consumption expenditures appear to have slowed last quarter... Oh Bennie, the housing ATM MEW spigot got shut off.
Consumption outlays are likely to continue growing at a moderate pace, aided by a strong labor market.
Bennie's increasing PCE will be due to STAGFLATION, he pray's for corporate America to spend and hire, HA!! Those turncoats will when Hell freeze's over!
Sizable increases in food and energy prices have boosted overall inflation and eroded real incomes in recent months. Thats what I call "growth" in income.
One risk to the outlook is that the ongoing housing correction might prove larger than anticipated, with possible spillovers onto consumer spending.
Bennie, what did you say earlier? Please connect the dots...
If inflation were to move higher for an extended period and that increase became embedded in longer-term inflation expectations,
the re-establishment of price stability would become more difficult and costly to achieve.
I guess Bennie means that in the last 5 years...
prices for just about anything and everything outside of imported Chinese durables and computer related equipment have skyrocketed to absurd levels.
AKA prices have been anything but stable for some time now and if the energy stagflation keeps permeating the supply chain, we are really screwed.
The recent rapid expansion of the subprime market was clearly accompanied by deterioration in underwriting standards and, in some cases, by abusive lending practices and outright fraud.
An honest statement. But along those lines...
What follows can be found filed under F for FED or F*CKED, as in no subprime spillover into the banking system or economy...
Rising delinquencies and foreclosures are creating personal, economic, and social distress for many homeowners and communities--problems that likely will get worse before they get better.
Alrighty then, Bennie finally screams UNCLE & admits that the subprime debacle has effected the economy and things are going to get worse.
FYI... CIT Group , the largest independent commercial finance company in the U.S., reported an unexpected $127M Q2 loss and said it's getting out of home lending.
From Bloomberg:
JPMorgan failed to sell $1.15B of bonds for Memphis, Tennessee-based ServiceMaster Co. on July 3.
JPMorgan, #3 U.S. bank, is among lenders that have been saddled with at least $11 B of high yield bonds and loans they haven't been able to readily sell.
JPMorgan Chase CEO Jamie Dimon said demand for leveraged buyout debt is drying up and banks may be left holding more loans that they can't sell.
Remember now, Bennie said no spillover into the economy, and no spillover into banking, isn't that right George? Which way did he go? George? Which way did he go?
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