Thursday, July 7, 2011

Ultralow Short-Term Rates Failing to Help Most Banks - Barrons.com

AHEAD OF THE BOND VIGILANTES: Ultralow Short-Term Rates Failing to Help Most Banks - Barrons.com

One could imagine a world in which the US was building infrastructure and had fiscal, tax, investor, anti-union,pro-education, immigration and regulatory policies that made it the ideal place to grow a business.

In such a situation, one could imagine loan growth.

Sadly, we're worried about funding those who can't take care of themselves and who've come to rely on government benefits and transfer payments.

Also, the liberals and Dems see nothing wrong with the policies that they support that got us into this situation and want more of the same.

Can't think this is much of a recipe for a turnaround. At best, something stagnant.

But, are we in fact in the midst of a Greek-like bubble with a Laffer Curve downside? And, if so, how long can it run?

Someone on Bloomberg tonight suggested the discussions by politicians in Washington are at least addressing issues before they are taken charge of by the 'bond vigilantes'????

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