via NYT
>
Source:
Breaking a Barrier to Lending
NYT, February 20, 2009
http://www.nytimes.com/interactive/2009/02/20/business/20090220-lend-graphic.html
Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data, ability to repeat discredited memes, and lack of respect for scientific knowledge. Also, be sure to create straw men and argue against things I have neither said nor even implied. Any irrelevancies you can mention will also be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.
"Overall household indebtedness is up from $7 trillion to almost $10 trillion since 2000. On this sum, we estimate, the American consumer has an annual interest bill of more than $500 billion; a sum, by the way, that vastly exceeds his current income growth." —Kurt Richebacher
Knowing that the vote over the weekend in Greece was really a referendum on Euro membership, a majority of the Greek Parliament said yes to staying. European Finance Ministers meet again on Wednesday to solidify the 2nd bailout package for Greece at the same time hopefully a deal is consummated between Greece and its creditors this week. The Greek 14.5b euro bond that matures on March 20th is up by 2 pts. The optimism that all will be completed and contained AGAIN to Greece has yields lower in Portugal, Spain and Italy. The iTraxx Financial Index is also narrower by...
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February 20th, 2009 at 12:28 pm
Could anybody possibly be any more ill-informed than the guy who proposed this?
Let’s start with the very first words: “The banks have come to depend…”
Stop.
So what?????
February 20th, 2009 at 12:29 pm
May I suggest a new security. Instead of ABS/MBS we will now have GBS (Government-Backed security ;) and have ourselves a ‘brand’ (pun intended) new bubble!
I’m sure the volume chart of GBS will resemble that of ABS/MBS displayed on the right of the NYT image (but starting in 2008 instead of 1996)
February 20th, 2009 at 12:37 pm
Looking at the volume chart, right…
Not counting 2001-2007, it looks like the average loaned amount is ~500B (.5T).
If we take the loans made during 2001-2007, it looks like a total of ~7 Trillion in ‘surplus’ loans (loans beyond the average amount).
I bet not every single person will default… but Roubini’s 3.6T estimate of losses may be optomistic.