Tuesday, October 4, 2016

SAR #16278

The young are not listening. They never did.
Next Up. Or Down: The banking crisis is nine years old and going strong – especially in Europe, where it has morphed into a crisis caused by central bank attempts to quell the crisis. Deutsche Bank is the poster child, but there are a lot more waiting in the wings, for it's pretty hard for a bank to make money with interest rates at zero; they, like the economy, need growth, preferably exponential growth. Without growth and without interest income, how can anyone pay back a loan? Ah, the game is afoot.
Even More of the Same: “If you liked the dysfunction, gridlock and petulance of the 114th Congress, then you are going to love what’s in store for the 115th Congress”
Wish List: Turkish President-for-life Erdogan wants the EU to give Turks visa-free travel by the end of the month. I want a pony.
Fingers in the Dike: Germany wants to send immigrants back to Greece and the Greeks to then send most them back to Erdogan.
Language Arts: Environmental officers in Africa are going to drop “trained dogs from helicopters” to “tackle poachers. I don't think 'tackle' accurately describes the intended effect.
Corrective: Would someone tell the Trump camp that Ms. Clinton held public office for only 12 years, not thirty, and only 8 of them in a lawmaking capacity.
Lawyer Full Employment Bill: If you or someone you know has been harmed by an illegal US invasion, say of Iraq or Afghanistan, or drone strike, say in Iraq, Afghanistan, Sudan, Libya, Yemen, of similar, or been rendered, tortured or put on a no-fly list, call the number on your screen.
Asked & Answered: Can an atheist lead a Protestant church? Oh, yeah. You'd be surprised how many ministers lose their faith as time goes by.
Graveyard Whistling: Given that he lost a billion bucks in one year and hasn't paid federal income taxes for a generation and he still won't release his tax returns, whatever in there is obviously worse. Arguably much worse.
With God On Our Side: Russian and Syrian planes dropped barrel bombs on two of the largest hospitals in rebel-held Aleppo including the 'cave' hospital.
Moving Day: Some of us who used to be Scopios are now Somethngelse. Who cares?
Porn O'Graphic: What were we thinking?
A Parting Shot:


George Anderson said...

The world of 'I' remains relatively tiny when we are young and most of us were preoccupied with our own needs and interests because we [foolishly as it turns out] believed 'the adults' were minding the store.

Funny how 'parental love' can turn so quickly into 'abandonment' when we learn things aren't as we were taught.

Worse, this realization doesn't come until later in life although it does account for the Angst felt by the young as their attempts to get their proverbial 'feet under themselves' are repeatedly foiled.

Again they blame themselves when the fact of the matter is they have been sabotaged by 'other people's parents' and the 'pay to play' legal system.

Um, in a totally unrelated matter, is today's snapshot a microscopic view of sperm or are they the weirdest pussy willow's ever?

Charles Kingsley Michaelson, III said...

Todays vermin are sort of very much over-achieving aphids... sort of ants or such that have these giganormous white frothy outpourings.... On sycamore tree.

Blissex said...

«it's pretty hard for a bank to make money with interest rates at zero»

That common idea is based on a confusion: that there is only one interest rate, and that rate is the fed funds target rate.

But actually there are many different rates, in two in categories: "passive" (or "cost of funds) rates paid by the banks to those that lend to them) and "active" rates (collected by the banks from those the banks give loans). The difference between them is the "spread".

The fed funds target rate is indeed near zero, and thus the "cost of funds" to the banks is near zero. But "active" rates are as a rule far from zero for most borrowers. Only very large very safe corporate borrowers suffer near zero "active" rates, and those haven't borrowed from banks for a long time. So banks are still making a lot of money from pretty large spreads with many customers. Plus banks make a lot of their money with trading, which is financed by borrowing at near zero "cost of funds" rates.

It is only in the ridiculous "neoclassical" style models that there is a single interest rate on "money" and that coincides with the "rate of profit".

There are some interesting graphs here (figures 1 and 2) about the rather different levels of the federal funds target rate and other "wholesale" rates:


Of course "active" rates paid by retail customers like ordinary businesses and individuals, such as credit card borrowers, still involve colossal spreads.

mc said...

Some of us read you for links like the Zodiac thing, but then, every other day or so, you slip in things like Hillary couldn't possibly have affected public policy except as a formal public official. We are not Trump supporters/believers but have brains and memories and other sites to view. Please knock off the crap.