Tuesday, Oct 28, 2008
It is very nice to see cracks in the unity. I think they plunged it too far to get their NWO!!
Minneapolis Federal Reserve Bank: Minneapolis Fed Challenging Claims Made by the National Fed
Facts and Myths about the Financial Crisis of 2008" examines these four arguments:
1. Bank lending to nonfinancial corporations and individuals has declined sharply.
2. Interbank lending is essentially nonexistent.
3. Commercial paper issuance by nonfinancial corporations has declined sharply, and
rates have risen to unprecedented levels.
4. Banks play a large role in channeling funds from savers to borrowers.
Posted by planning4acrash @ 10:10 PM (417 views) Add Comment
6 Comments
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1. planning4acrash said...
Some great graphs in it. Pages, and pages of them. Looks like this branch of the Fed has chosen to release data held back by the main fed, or not publicized by it.
2. planning4acrash said...
ABSTRACT
The United States is indisputably undergoing a financial crisis. Here we examine four claims about the way the financial crisis is affecting the economy as a whole and argue that all four claims
are myths. Conventional analyses of the financial crisis focus on interest rate spreads. We argue that such analyses may lead to mistaken inferences about the real costs of borrowing and argue
that, during financial crises, variations in the levels of nominal interest rates might lead to better inferences about variations in the real costs of borrowing.
3. planning4acrash said...
Answers:
1.) "...[T]he first claim, that banks have essentially stopped lending to nonbank entities and individuals, is false, at least in the aggregate as of October 8."
2.) "These figures (see paper linked above) show that, at least in the aggregate, interbank lending is healthy. The second claim, that the volume of interbank lending has fallen sharply, is false, at least as of October
8."
3.) "...[W]hile commercial paper issued by financial institutions has declined, commercial paper issued by nonfinancial institutions is essentially unchanged during the financial crisis."
4.) "The claim that disruptions to the banking system necessarily destroy the ability of nonfinancial businesses to borrow from households is highly questionable."
CONCLUSION:
Our analysis has raised questions about the claims made for the mechanism whereby the financial crisis is affecting the overall economy. We emphasize that we do not dispute that
the United States is undergoing a financial crisis and that the United States economy may be in a recession or may experience one in the near future. Our analysis is based on publicly
available data. Policymakers have access to other sources of data as well. Policymakers could well believe that bold action is necessary based on data that are different from that considered
here. If so, responsible policymaking requires that they share both the data and the analysis that underlies the need for bold policy with the public.
4. planning4acrash said...
Read between the lines. A regional branch of the Federal Bank claims that actions of the central Federal Bank is acting based on false analysis of data, or, that it is withholding data. Either way, it is a shrouded, but piercing accusation.
5. Fjcruiser said...
Agree with planning4crash.I d like to know what data the US government is using then, or is there something sinister behind all this ?
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