Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: gregor_us who wrote (5912)	1/23/2004 9:33:24 AM
From: russwinter	Read Replies (3) \| Respond to of 110194

<Do you think the paradigmatic shift has already occurred, from Deflation to Inflation--with no reversion possible, now?. Yes, on the first part, way too early to call on the reversion part. I have been posting the "train wreck" (crack up boom) evidence of the inflation shift here regularly (as you probably know?). This inflation was unleashed very quickly, really starting in the 4Q. There is no real evidence of deflation reversion (bond yields are giving a false signal, as the BOJ (and a few neighbors) are buying up all the new issuance) today, but of course if the "train wreck" leads to another bust, it may. Do you see any evidence of an deflationary bust, now?

To: gregor_us who wrote (5912)	1/23/2004 10:04:10 AM
From: mishedlo	Read Replies (1) \| Respond to of 110194

Business Lending as Scarce as Jobs It's not just the economy's unwillingness to produce new jobs that's confounding the experts. The lack of growth in corporate bank borrowing is also giving them fits. Executives at banks both large and small continue to report that the demand for commercial loans remains sluggish at best, even though the government said the economy was growing at a sizzling 7% rate in the second half of 2003. The list of lenders that reported no significant pickup in commercial lending in fourth-quarter earnings reports includes Citigroup (C:NYSE - commentary - research), CIT Group (CIT:NYSE - commentary - research), FleetBoston Financial (FBF:NYSE - commentary - research), KeyCorp (KEY:NYSE - commentary - research), PNC (PNC:NYSE - commentary - research) and Wells Fargo (WFC:NYSE - commentary - research). The dollar volume of big syndicated bank loans to corporations fell 6.8% to $979 billion in 2003 from the prior year, according to Thomson Financial. The reluctance of companies to start borrowing again remains one of the mysteries of the economic recovery, and it could spell trouble for small and midsized banks that rely on corporate lending to fill their coffers. That's especially true if consumer borrowing starts to ebb this year, as many expect it will. thestreet.com =========================================================== What a bunch of total dimwits We have overcapacity and no one can figure out why commercial customers are not borrowing. Yet the FED is trying like mad to push this money down their throats. M