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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: philv who wrote (100796)	8/13/2009 12:21:17 PM
From: Elroy Jetson	Respond to of 116555

Once you've lent out $10,000 never to be repaid it's missing whether you're a bank or my Mother. If the loan created monetary inflation when it was lent out, this effect is totally reversed when it is repaid and also if it is lost, never to be repaid. This decline in "money supply" occurs even if the bank refuses to recognize the loss, and is not reflected in the official tally of "money supply". bloomberg.com "While Regions may be an extreme example of inflated loan values, it’s not unique. Bank of America Corp. said its loans as of June 30 were worth $64.4 billion less than its balance sheet said. The difference represented 58 percent of the company’s Tier 1 common equity, a measure of capital used by regulators that excludes preferred stock and many intangible assets, such as goodwill accumulated through acquisitions of other companies." "Consequently, the difference between being well capitalized and woefully undercapitalized may come down to nothing more than some chief executive’s state of mind." .

To: philv who wrote (100796)	8/13/2009 12:52:15 PM
From: mishedlo	2 Recommendations Respond to of 116555

Hussman on Post-Crash Dynamics globaleconomicanalysis.blogspot.com John Hussman is nearly always a great read and his post on Post-Crash Dynamics is no exception. Here are a few snips. ... Mish

To: philv who wrote (100796)	8/13/2009 9:54:26 PM
From: Rocket Red	Read Replies (1) \| Respond to of 116555

exactly the money never disappears somebody else got it in his pocket

To: philv who wrote (100796)	8/14/2009 12:29:03 AM
From: mishedlo	4 Recommendations Read Replies (1) \| Respond to of 116555

Bay Area Rapid Transit Union Sets Strike Over Pension Benefits globaleconomicanalysis.blogspot.com San Francisco commuters may be in for a rough week as the Bay Area Rapid Transit (BART) transit union has voted to go on strike in a wage and benefits dispute. ... Mish