Comments on: Bank Lending Continues to Slip http://www.ritholtz.com/blog/2009/09/bank-lending-continues-to-slip/ Macro Perspective on the Capital Markets, Economy, Geopolitics, Technology, and Digital Media Tue, 14 Feb 2012 22:17:29 +0000 hourly 1 http://wordpress.org/?v=3.0.5 By: WaveCatcher http://www.ritholtz.com/blog/2009/09/bank-lending-continues-to-slip/comment-page-2/#comment-216408 WaveCatcher Thu, 17 Sep 2009 06:24:46 +0000 http://www.ritholtz.com/blog/?p=38371#comment-216408 The chart is merely a depiction of the D-cycle. When assets fall in value (deflation), there is less demand for borrowed money. Thus less lending. The chart is merely a depiction of the D-cycle. When assets fall in value (deflation), there is less demand for borrowed money. Thus less lending.

]]> By: depressionomics http://www.ritholtz.com/blog/2009/09/bank-lending-continues-to-slip/comment-page-2/#comment-216265 depressionomics Wed, 16 Sep 2009 20:02:21 +0000 http://www.ritholtz.com/blog/?p=38371#comment-216265 BR says: "...we see that bank lending is still heading in the wrong direction: Downwards. Its hard to see how a credit dependent economy can grow as credit contracts." It can't, and will not. This is exactly where it needs to go...for a long, long time. BR says:

“…we see that bank lending is still heading in the wrong direction: Downwards. Its hard to see how a credit dependent economy can grow as credit contracts.”

It can’t, and will not. This is exactly where it needs to go…for a long, long time.

]]> By: leftback http://www.ritholtz.com/blog/2009/09/bank-lending-continues-to-slip/comment-page-2/#comment-216243 leftback Wed, 16 Sep 2009 19:24:43 +0000 http://www.ritholtz.com/blog/?p=38371#comment-216243 Keep your eyes on that massive resistance area looming above us. Quite a few people would "break even" up there. All they need is some sucker to sell to. Keep your eyes on that massive resistance area looming above us. Quite a few people would “break even” up there.
All they need is some sucker to sell to.

]]> By: cvienne http://www.ritholtz.com/blog/2009/09/bank-lending-continues-to-slip/comment-page-2/#comment-216232 cvienne Wed, 16 Sep 2009 19:14:00 +0000 http://www.ritholtz.com/blog/?p=38371#comment-216232 @Wanger 89weekMA... Re: Panic buying... I don't see today as panic buying either... IMO - There's a rush to get this thing up to the 89weekMA ahead of opex Friday and the Yom Kippur Rosh Hashanah interval... That about sums it up for me (and why I was such a "quick out" when I tried shorting at 1054 and stopped out right there)... @Wanger

89weekMA…

Re: Panic buying… I don’t see today as panic buying either…

IMO – There’s a rush to get this thing up to the 89weekMA ahead of opex Friday and the Yom Kippur Rosh Hashanah interval…

That about sums it up for me (and why I was such a “quick out” when I tried shorting at 1054 and stopped out right there)…

]]> By: HarryWanger http://www.ritholtz.com/blog/2009/09/bank-lending-continues-to-slip/comment-page-2/#comment-216219 HarryWanger Wed, 16 Sep 2009 18:54:54 +0000 http://www.ritholtz.com/blog/?p=38371#comment-216219 leftback: I don't see today as "panic buying". There's not enough volume. Just the markets reacting to excellent economic news on consecutive days. Yesterday they were a bit timid until confirmation of more numbers today. leftback: I don’t see today as “panic buying”. There’s not enough volume. Just the markets reacting to excellent economic news on consecutive days. Yesterday they were a bit timid until confirmation of more numbers today.

]]> By: HarryWanger http://www.ritholtz.com/blog/2009/09/bank-lending-continues-to-slip/comment-page-2/#comment-216215 HarryWanger Wed, 16 Sep 2009 18:52:15 +0000 http://www.ritholtz.com/blog/?p=38371#comment-216215 cvienne: regarding Yamada, what moment is she looking at? 12 points SPX - 1080? cvienne: regarding Yamada, what moment is she looking at? 12 points SPX – 1080?

]]> By: leftback http://www.ritholtz.com/blog/2009/09/bank-lending-continues-to-slip/comment-page-2/#comment-216212 leftback Wed, 16 Sep 2009 18:48:29 +0000 http://www.ritholtz.com/blog/?p=38371#comment-216212 Good call last week, I-Man. Respect, and less Bud Lite, more microbrews for you. That's a good thing, bro. We are just now in the area of SPX corresponding to October's waterfall decline. Remember knifing right through 1066? SPX could easily fill the gap up to 1095-1100 on what feels more than ever today like "panic buying". At 1100, more than a few people may decide that they are no longer underwater, and it's time to say goodbye. The window of opportunity is closing fast ahead, so I-Man and Wanger, gather ye rosebuds while ye may. Good call last week, I-Man. Respect, and less Bud Lite, more microbrews for you. That’s a good thing, bro.

We are just now in the area of SPX corresponding to October’s waterfall decline. Remember knifing right through 1066? SPX could easily fill the gap up to 1095-1100 on what feels more than ever today like “panic buying”.

At 1100, more than a few people may decide that they are no longer underwater, and it’s time to say goodbye. The window of opportunity is closing fast ahead, so I-Man and Wanger, gather ye rosebuds while ye may.

]]> By: Novemberrain http://www.ritholtz.com/blog/2009/09/bank-lending-continues-to-slip/comment-page-2/#comment-216213 Novemberrain Wed, 16 Sep 2009 18:48:29 +0000 http://www.ritholtz.com/blog/?p=38371#comment-216213 I think the nation's housing market is facing new downward pressure as holders of subprime-mortgage bonds inundate the market with foreclosed homes at prices that are much lower than where many banks are willing to sell. "Experts say this is a bad omen for residential real-estate prices and homeowners trying to sell or refinance, because the fire sales, many to cover soured subprime loans, put downward pressure on the value of nearby homes. All of this undermines federal efforts to stabilize the housing market and revive the broader economy. "While the banks are trying frantically to get loans off their books, they face the problem of large shadow inventories of housing being dumped on the market, which would depress prices further," said Anthony Sanders, real-estate finance professor at George Mason University in Fairfax, Va." With high joblessness, it is only normal that subprime-mortgage holder would like to sell their properties since they are not sure of the employment status in the coming months. Read More: <a href="http://www.housingnewslive.com" rel="nofollow">http://www.housingnewslive.com</a> I think the nation’s housing market is facing new downward pressure as holders of subprime-mortgage bonds inundate the market with foreclosed homes at prices that are much lower than where many banks are willing to sell.

“Experts say this is a bad omen for residential real-estate prices and homeowners trying to sell or refinance, because the fire sales, many to cover soured subprime loans, put downward pressure on the value of nearby homes. All of this undermines federal efforts to stabilize the housing market and revive the broader economy.

“While the banks are trying frantically to get loans off their books, they face the problem of large shadow inventories of housing being dumped on the market, which would depress prices further,” said Anthony Sanders, real-estate finance professor at George Mason University in Fairfax, Va.”

With high joblessness, it is only normal that subprime-mortgage holder would like to sell their properties since they are not sure of the employment status in the coming months.
Read More: http://www.housingnewslive.com

]]> By: I-Man http://www.ritholtz.com/blog/2009/09/bank-lending-continues-to-slip/comment-page-2/#comment-216207 I-Man Wed, 16 Sep 2009 18:35:09 +0000 http://www.ritholtz.com/blog/?p=38371#comment-216207 @ CV 1:06: LOL. Too bad those "profits" (if I-Man should take them) are already earmarked for a future date with either: a. shorting crude b. shorting SPX c. long TLT (or LQD... hmm... LB) d. all of the above Another day, another stop raise. :) Dont hate the player, hate the game breddahs. @ CV 1:06:

LOL.

Too bad those “profits” (if I-Man should take them) are already earmarked for a future date with either:
a. shorting crude
b. shorting SPX
c. long TLT (or LQD… hmm… LB)
d. all of the above

Another day, another stop raise. :) Dont hate the player, hate the game breddahs.

]]> By: cvienne http://www.ritholtz.com/blog/2009/09/bank-lending-continues-to-slip/comment-page-2/#comment-216206 cvienne Wed, 16 Sep 2009 18:33:41 +0000 http://www.ritholtz.com/blog/?p=38371#comment-216206 @Harry actually Harry, you know I'm just teasing you here... I'm impressed with this rally (and I hope it continues for you, and I'm more happy for your success than I 'sound' like here)... I get teased a lot because I like to make predictions, so I understand your position... I'm VERY CURIOUS what happens when it reaches its Louise Yamada moment... That's coming about 12 points overhead... @Harry

actually Harry, you know I’m just teasing you here… I’m impressed with this rally (and I hope it continues for you, and I’m more happy for your success than I ‘sound’ like here)… I get teased a lot because I like to make predictions, so I understand your position…

I’m VERY CURIOUS what happens when it reaches its Louise Yamada moment… That’s coming about 12 points overhead…

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