After he takes office, President-elect Barack Obama will face monumental challenges posed by the U.S. financial system. Some experts say a key is getting money back into the mortgage market. MarketWatch’s Stacey Delo reports. (Nov. 20)
11/20/2008
Consumer Credit outstanding fell $14.8b in Sept seasonally adjusted, almost $5b more than expected and marks the 11th month in the past 12 of declines. At $2.456T outstanding, it is 4.9% below the record high in July '08. After a flat reading in Aug, (didn't fall b/c of the CARS program), non revolving debt outstanding fell by $4.9B. Revolving (mostly credit cards) balances outstanding fell by $9.9B. To fully put into perspective today's data, look at the current level of consumer credit (doesn't include mortgages, the biggest chunk of consumer credit) relative to GDP. As of Q3, it totaled 17.2%...
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November 20th, 2008 at 6:47 pm
What is the fastest way to reflate the US?
November 20th, 2008 at 6:56 pm
OMG. Why does Disney need money?
Walt Disney Co. (DIS) on Thursday registered with the Securities and Exchange Commission to sell 10.4 million common shares from time to time.
The Burbank, Calif., entertainment and media company said it is offering a direct stock purchase plan for shareholders.
Disney intends to use any proceeds for general corporate purposes, it said in its filing.
November 20th, 2008 at 9:08 pm
Reconvene the G20 and tell them: “monetization is good for business”. Show them how they, too, are losing tax revenue (in real and nominal terms) during USD deflation, thanks to every business and every consumer “tightening up”.
Bailouts targeting particular sectors (banks) or underwater home “squatters” are too arbitrary (”AIG but not GM?”), unfair (”reward failures”) and inefficient (”bureaucracy and ‘moral hazard’”).
The tide pulled out completely out of the bay. Almost half of all boats have run aground onto sandbars. The rest of the boats are stuck in their own puddles and thus can’t navigate to trade with each other. Trying to raise and lower particular boats won’t do enough. What we want is to re-flood the bay.
November 20th, 2008 at 9:09 pm
Send checks to taxpayers every month until prices start stabilizing.