Comments on: A Look at Liquidity: The Real Reason Banks Aren’t Lending http://moneymorning.com/2009/04/23/bank-lending-liquidity/ Global Investment News Fri, 12 Mar 2010 19:12:13 -0500 http://wordpress.org/?v=2.9.1 hourly 1 By: Controversial Stress Tests Reveal Only One Bank Needs Capital, but Worries Remain http://moneymorning.com/2009/04/23/bank-lending-liquidity/comment-page-1/#comment-6293 Controversial Stress Tests Reveal Only One Bank Needs Capital, but Worries Remain Mon, 27 Apr 2009 09:34:02 +0000 http://www.moneymorning.com/?p=7032#comment-6293 [...] (borrowing) was not adversely affected.  As a Money Morning special report detailed last week, the credit markets don’t seem to be loosening up: Lending dropped by more than 20% from October 2008 to February 2009, despite initiatives to [...] [...] (borrowing) was not adversely affected.  As a Money Morning special report detailed last week, the credit markets don’t seem to be loosening up: Lending dropped by more than 20% from October 2008 to February 2009, despite initiatives to [...]

]]> By: RFDLPA http://moneymorning.com/2009/04/23/bank-lending-liquidity/comment-page-1/#comment-6291 RFDLPA Thu, 23 Apr 2009 19:19:55 +0000 http://www.moneymorning.com/?p=7032#comment-6291 TO: Don Miller; Associate Editor. A Look at Liquidity: The Real Reason Banks Aren't Lending Why don't you take a look at the way Banks work... Specifically at the Fractional Banking system eveyone uses. Banks work lending up to 9 tines every real dollar they have, when uncertainty shows up, they all run to grab all they can, to cover their ass. They are not lending because they are scared, they don't have money to respond for what their GREED and the system got them into. They have too much money in the streets, and no assets to respond for that, no mater how much money the government gives them, they will still hoarding it. Am I wrong ? besides, I know that things are not so simple, but isn't that one of the main reasons, why nobody talks about this. We look with horror at the corruption in the third world countries, and are not able to see the corruption in our country disguised as a greedy financial system, but at the en they are both the EXACT same thing, instead of corrupt military presidents we have Wall street and the big ones behind, the Rockefellers, Rothshilds, Morgans and several more, all they way down the corporate ladder and their peers, the whole world is in their hands; the government is just another puppet in their hands. we are doomed, unless the truht in tha hands of the world sets us free. I know that you just may delete all this with a click of your mouse. But before you do it, just simply consider watching the first 5 minutes of a documentary called "The money masters" made in the late 90's, and I wonder how this guys knew what was coming http://video.google.com/videoplay?docid=-515319560256183936&ei=S7zwSeXqN5j-rAL8sMGqCw&q=the+money+masters+full and Please if you can give us a little feedback on their theories... are they true. Thank you. Robert DeLaPlaza rdelaplaza@gmail.com TO: Don Miller; Associate Editor.

A Look at Liquidity: The Real Reason Banks Aren’t Lending

Why don’t you take a look at the way Banks work…
Specifically at the Fractional Banking system eveyone uses.

Banks work lending up to 9 tines every real dollar they have, when uncertainty shows up, they all run to grab all they can, to cover their ass.

They are not lending because they are scared, they don’t have money to respond for what their GREED and the system got them into.

They have too much money in the streets, and no assets to respond for that, no mater how much money the government gives them, they will still hoarding it.

Am I wrong ? besides, I know that things are not so simple, but isn’t that one of the main reasons, why nobody talks about this.

We look with horror at the corruption in the third world countries, and are not able to see the corruption in our country disguised as a greedy financial system, but at the en they are both the EXACT same thing, instead of corrupt military presidents we have Wall street and the big ones behind, the Rockefellers, Rothshilds, Morgans and several more, all they way down the corporate ladder and their peers, the whole world is in their hands; the government is just another puppet in their hands.

we are doomed, unless the truht in tha hands of the world sets us free.
I know that you just may delete all this with a click of your mouse.

But before you do it, just simply consider watching the first 5 minutes of a documentary called

“The money masters” made in the late 90’s, and I wonder how this guys knew what was coming

http://video.google.com/videoplay?docid=-515319560256183936&ei=S7zwSeXqN5j-rAL8sMGqCw&q=the+money+masters+full

and Please if you can give us a little feedback on their theories… are they true.

Thank you.

Robert DeLaPlaza
rdelaplaza@gmail.com

]]> By: Billy Peterson http://moneymorning.com/2009/04/23/bank-lending-liquidity/comment-page-1/#comment-6292 Billy Peterson Thu, 23 Apr 2009 14:15:40 +0000 http://www.moneymorning.com/?p=7032#comment-6292 Sirs: A case can be made that your financial problems are not GM’s, but the fault of the Government. 70 years ago Henry Hazlitt in “Economics in One Lesson” wrote “In the long run imports and exports must equal each other” (pg 40), and “The government cannot keep piling up debt indefinitely; for if it tries, it will some day become bankrupt.” (pg 85). Imports now have gotten so far out of hand; the U.S. no longer makes and supplies much of its needs. This won’t work. Vehicles are fundamental to the U.S. Our automotive industry now must make a transition to nuclear-hydrogen vehicles. For many reasons, it would be extremely wrong to have foreign car manufacturers make that transition for us. Our big 3 have served the U.S. well, we need to have them continue. And there must be limits. Imports cars cannot exceed what the big 3 export. It’s not a banking, housing, or stock market problem; we have an unworkable international commerce situation. For interior commerce our Government must maintain a level of money in our economy to maintain a level of liquidity. With the imbalance of trade so far out of whack, a trillion dollars a year is being taken out of our economy which money has to be regularly replaced. Most of our problems relative to this are automotive industry associated. 93 other countries produce oil that the U.S. imports. The U.S. imports two dozen makes of cars that are manufactured abroad. Isn’t it obvious that something is very wrong when 90% of the world’s fuel and cars are produced abroad while 90% of the World’s oil and car market is the U.S.? This cannot work. America gets oil and burns it up, and imports cars and turns them to junk So the U.S. ends up with nothing as the rest of the World has all of our money, and we still owe much more money than we have. What is still worse. I believe that I can make a case that the import purchasing of foreign vehicles are costing three times the price of the vehicles. The first cost is the purchase of the vehicle, which consumer money goes abroad to pay for the foreign labor to make it. Then that money has to be replaced in the liquid economy. So the second cost goes for the Government’s infusion of the money required to replace purchase money from the resulting imbalance of trade sales. For argument, say U.S. consumers put $100 billion with Japan and Germany for cars. That money was needed for commerce in the U.S., so the Government has to infuse $100 billion into the economy. The third cost is the monies being paid to the support and maintain a U.S. unemployed sector who should have made the vehicle in the first place. Challenge this if you want? What has been happening can’t continue. See the chart on United States National Public Debt on page 3 of the attached Energy and Capital article “The Great American Debt Machine.” My Operations Research Economic Model shows that imbalance of trade becomes deficit. At every level, from individual, household, business, county, state, to the whole nation, the production in that entity has to be as much as the entity’s consumption. Product and services can be traded, but trading must balance. At the national level, U.S. trade is a trillion dollars per year out of whack, the U.S. deficit. Many nations are now in the same trouble. Each nation must fix this for itself by the DRI Rules. Sirs:
A case can be made that your financial problems are not GM’s, but the fault of the Government. 70 years ago Henry Hazlitt in “Economics in One Lesson” wrote “In the long run imports and exports must equal each other” (pg 40), and “The government cannot keep piling up debt indefinitely; for if it tries, it will some day become bankrupt.” (pg 85). Imports now have gotten so far out of hand; the U.S. no longer makes and supplies much of its needs. This won’t work. Vehicles are fundamental to the U.S. Our automotive industry now must make a transition to nuclear-hydrogen vehicles. For many reasons, it would be extremely wrong to have foreign car manufacturers make that transition for us. Our big 3 have served the U.S. well, we need to have them continue. And there must be limits. Imports cars cannot exceed what the big 3 export.

It’s not a banking, housing, or stock market problem; we have an unworkable international commerce situation. For interior commerce our Government must maintain a level of money in our economy to maintain a level of liquidity. With the imbalance of trade so far out of whack, a trillion dollars a year is being taken out of our economy which money has to be regularly replaced. Most of our problems relative to this are automotive industry associated.

93 other countries produce oil that the U.S. imports. The U.S. imports two dozen makes of cars that are manufactured abroad. Isn’t it obvious that something is very wrong when 90% of the world’s fuel and cars are produced abroad while 90% of the World’s oil and car market is the U.S.? This cannot work. America gets oil and burns it up, and imports cars and turns them to junk So the U.S. ends up with nothing as the rest of the World has all of our money, and we still owe much more money than we have.

What is still worse. I believe that I can make a case that the import purchasing of foreign vehicles are costing three times the price of the vehicles. The first cost is the purchase of the vehicle, which consumer money goes abroad to pay for the foreign labor to make it. Then that money has to be replaced in the liquid economy. So the second cost goes for the Government’s infusion of the money required to replace purchase money from the resulting imbalance of trade sales. For argument, say U.S. consumers put $100 billion with Japan and Germany for cars. That money was needed for commerce in the U.S., so the Government has to infuse $100 billion into the economy. The third cost is the monies being paid to the support and maintain a U.S. unemployed sector who should have made the vehicle in the first place. Challenge this if you want?

What has been happening can’t continue. See the chart on United States National Public Debt on page 3 of the attached Energy and Capital article “The Great American Debt Machine.” My Operations Research Economic Model shows that imbalance of trade becomes deficit. At every level, from individual, household, business, county, state, to the whole nation, the production in that entity has to be as much as the entity’s consumption. Product and services can be traded, but trading must balance. At the national level, U.S. trade is a trillion dollars per year out of whack, the U.S. deficit. Many nations are now in the same trouble.

Each nation must fix this for itself by the DRI Rules.

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