Jump to content
House Price Crash Forum
Realistbear

Jumping Jack Flash (paulson) Issues Terrifying Statement

Recommended Posts

http://www.signonsandiego.com/news/busines...on-capital.html

Paulson: 'go get it' if institutions need capital

REUTERS

7:54 a.m. March 3, 2008
WASHINGTON – U.S. Treasury Secretary Henry Paulson Monday said that financial institutions should seize the opportunity to raise fresh capital if they think they need it, for both their own and the sake of the wider economy.
“The big message that I am giving to financial institutions is that if you think there is any likelihood that you are going to need capital, and it is available today, go get it,”
Paulson said during a question and answer session after a speech to an economic policy conference.
“Because then it is better for you and the overall economy, much better than shrinking your balance sheet,” he said.

Paulson* is basically telling the financial markets that there is nothing more the government or the Fed can do. The HPC and the collateral damage caused thereby is too big to handle.

The more I read the more I think we may be headed into something a little nastier than a recession.

____________________

* A.k.a "Jumpin Jack Flash" because of his nervous twitches and jerking motions when speaking on the current state of the world economy.

Share this post


Link to post
Share on other sites
http://www.signonsandiego.com/news/busines...on-capital.html

Paulson: 'go get it' if institutions need capital

REUTERS

7:54 a.m. March 3, 2008
WASHINGTON – U.S. Treasury Secretary Henry Paulson Monday said that financial institutions should seize the opportunity to raise fresh capital if they think they need it, for both their own and the sake of the wider economy.
“The big message that I am giving to financial institutions is that if you think there is any likelihood that you are going to need capital, and it is available today, go get it,”
Paulson said during a question and answer session after a speech to an economic policy conference.
“Because then it is better for you and the overall economy, much better than shrinking your balance sheet,” he said.

Paulson* is basically telling the financial markets that there is nothing more the government or the Fed can do. The HPC and the collateral damage caused thereby is too big to handle.

The more I read the more I think we may be headed into something a little nastier than a recession.

____________________

* A.k.a "Jumpin Jack Flash" because of his nervous twitches and jerking motions when speaking on the current state of the world economy.

For the individual could this be translated as advice to max credit cards and loan facilities etc at advantageous terms and reinvest the proceeds?

Share this post


Link to post
Share on other sites
Paulson* is basically telling the financial markets that there is nothing more the government or the Fed can do.

No he's not. He's telling the banks that if they can they should increase their capital rather than reduce credit on the grounds of balance sheet constraints. He's saying that a credit contraction would harm the rest of the economy.

I don't think it's as gloomy as you think, just advice that is common sense to anyone who is not a banker.

There is still a lot the Fed can do; unlike the ECB they haven't even begun the step of buying crap assets such as MBS from banks (or accepting them as collateral as they would say).

Edited by williamdb

Share this post


Link to post
Share on other sites
http://www.signonsandiego.com/news/busines...on-capital.html

Paulson: 'go get it' if institutions need capital

REUTERS

7:54 a.m. March 3, 2008
WASHINGTON – U.S. Treasury Secretary Henry Paulson Monday said that financial institutions should seize the opportunity to raise fresh capital if they think they need it, for both their own and the sake of the wider economy.
"The big message that I am giving to financial institutions is that if you think there is any likelihood that you are going to need capital, and it is available today, go get it,"
Paulson said during a question and answer session after a speech to an economic policy conference.
"Because then it is better for you and the overall economy, much better than shrinking your balance sheet," he said.

Paulson* is basically telling the financial markets that there is nothing more the government or the Fed can do. The HPC and the collateral damage caused thereby is too big to handle.

The more I read the more I think we may be headed into something a little nastier than a recession.

____________________

* A.k.a "Jumpin Jack Flash" because of his nervous twitches and jerking motions when speaking on the current state of the world economy.

Is gold looking more attractive RB? ;)

Share this post


Link to post
Share on other sites
There's a tide of inflation on it's way, rates are going up. Activity is going down.

It's when the tide recedes that the real problems begin....

Share this post


Link to post
Share on other sites
http://www.signonsandiego.com/news/busines...on-capital.html

Paulson: 'go get it' if institutions need capital

REUTERS

7:54 a.m. March 3, 2008
WASHINGTON – U.S. Treasury Secretary Henry Paulson Monday said that financial institutions should seize the opportunity to raise fresh capital if they think they need it, for both their own and the sake of the wider economy.
“The big message that I am giving to financial institutions is that if you think there is any likelihood that you are going to need capital, and it is available today, go get it,”
Paulson said during a question and answer session after a speech to an economic policy conference.
“Because then it is better for you and the overall economy, much better than shrinking your balance sheet,” he said.

Paulson* is basically telling the financial markets that there is nothing more the government or the Fed can do. The HPC and the collateral damage caused thereby is too big to handle.

The more I read the more I think we may be headed into something a little nastier than a recession.

You're smarter than the average bear then because I thought he was just talking ****** as usual.

1) These nutjobs consistently confuse capital with money. An accumulation of one leads to prosperity, whereas an accumulation of the other leads simply to higher prices.

2) The government and FED can do plenty more to increase the damage they have already caused... and they will. This is 100% guaranteed, to steal a popular turn of phrase.

3) Why does Paulson believe it is 'better for you and the overall economy' to increase further the quantity of unpayable debt?

The mind boggles.

________________

* A.k.a "Jumpin Jack Flash" because of his nervous twitches and jerking motions when speaking on the current state of the world economy.

Edited by Far Out Bear

Share this post


Link to post
Share on other sites
They aren't though are they. Borrowing rates are, saving rates are going down.

Yea, it's the big liquidity black hole I used to talk about, that has opened up between the commercial banks and consumers. Visible as a widening credit spreads.

Banks have suffered huge losses and now refuse to lend to a deflating economy. Central banks are increasing liquidity but due to lack of trust the chain is broken. And commercial banks are simply hoarding what money flows to them. Greater uncertainty requires greater reserve ratio's. We are watching an extended period of deleveraging.

Capital is not being recycled as quickly as it needs to be. Growing uncertainty means investing is riskier and therefor more costly. So everybody is left huddled in porchways waiting for the sky to clear.

With base rates coming down again soon, expect speculators to be the first out in the rain.

Share this post


Link to post
Share on other sites

How long before Paulson is caught gibbering in a bush within Central Park?

Share this post


Link to post
Share on other sites
With base rates coming down again soon, expect speculators to be the first out in the rain.

as a coffee and choclate consumer I am none to pleased about this....

whats next.... needless speculation in potatoes ? the last thing i need is an extra 20p on a packet of walkers :(

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 294 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.