Not sure if this is NTR but anyway
Looks as if some types of credit in the world of high finance are locking up
In other words investors are gun shy about chasing high yield risky loans
New loans have been cancelled and banks are stuck with loans on their books that they normally move along to the next entity. Banks usually act as the middle man but seem to be stuck holding the bag
zero activity could be concerning if investors move to high grade gov't bonds, etc and the Corp world seizes up
This could cause a ripple affect with your typical car loan, home mortgage, restricted to customers who can provide more secure loans
This ripple effect might affect economic activity and cause a slow down as we all know our system mostly operates on consumer credit
Did the 2008 crisis start with some kind of credit problems
I forget exactly what happened but this reminded me of the early days of the previous crisis
Thoughts
" Banks usually act as the middle man but seem to be stuck holding the bag"
Not to worry, Wayne. If there is another meltdown, the Government can come up with the third eight hundred billion dollar bailout. AS you pointed out, it's only paper.
The problem as I see it and I could be wrong
The world will soon be awash in paper
Did the EU not just finish their printing spree or are they still printing paper
China might let their currency slide in value as they print paper The USA certainly printed gobs of paper and called it QE 1 thru?? I forget how far the Fed went under Bernanke
Canada must be printing as our loonie is almost worthless
Somebody [I forget who] had printed so much money [was it Japan??] that there was virtually no assets left to buy. That is scary if true So: If everybody is printing in a race to the bottom {Trump still says the USD is too high]
At some point the world will revert to gold, silver, who knows as paper of any kind is worthless. World inflation with worthless paper is every bodies worst nite mare
That would guarantee a world depression
In the last depression money just disappeared
This time we might have too much paper
Instead of paying down debt the more debt you have the better as you repay with worthless paper.
Don't know?? . Just a wild arse guess
"Somebody [I forget who] had printed so much money [was it Japan??] that there was virtually no assets left to buy."
Wayne, you're probably thinking of Germany in the 1920's. The German people were so fed up with the Government that it made it easy for a charismatic outsider like Hitler to gain control.