US-Debt-Kills-Repo-Markets?-Bob Davis Podcast 885

US-Debt-Kills-Repo-Markets?-Bob Davis Podcast 885

Pay Attention To This Issue

My job is to bring new issues to the attention of subscribers and listeners. That’s why I sat down Saturday and recorded US-Debt-Kills-Repo-Markets?-Bob Davis Podcast 885.

Repo Market Hell

First of all I am not a banker but I stay current on financial news. Especially relevant are the concerns experts are voicing about something called the Repo Markets.

Not Where Your Car Goes When It’s Repossessed

In US-Debt-Kills-Repo-Markets?-Bob Davis Podcast 885 I’ll provide a definition of these markets. I’ll also explain ‘Repurchase Agreements‘.

Key Markets For World Banking Liquidity

Just remember, these markets are instrumental in keeping the world’s banking system afloat on a day to day basis.

Drying Up Like The Dust Bowl

That’s why it’s most noteworthy the repo markets unexpectedly started to dry up in the fall.

Fed Rides To The Rescue…Again

The drought forced the United States Federal Reserve Bank to dump billions into these little known markets.

Billions

More billions than the banking experts expected.

More Billions

320 Billion since last fall.

Even More Billions From The Fed

Even more the Federal Reserve has projected dumping as much as another 500 billion into these markets in 2020.

Whistling Past The Graveyard

Why? According to some, the Fed wants these markets, largely based on United States Treasury Bonds, to stay open and liquid.

Big Federal Deficits Finally Taking Their Toll?

After all, the federal government has ever larger budget deficits and debt to finance.

Trillions of Dollars of Debt Gotta Go Somewhere

Now hold onto your hats. The federal government has been dumping US Treasuries on these markets in 2019, in increasing amounts. After all, they have a now trillion dollar budget deficit to cover.

Rumors Of Bank Failures

Other supposed reasons for the problem include rumors of a big European Bank in trouble.

Could Be The Hedge Funds

Some blame the big hedge funds.

Or, Hedge Funds Are Saving Our Asses

Others say there’s so much federal debt out there, the hedge funds are saving our asses right now.

Regulations

Furthermore it’s suggested post 2008 financial crisis regulations are the culprit.

Too Much US Government Debt

Finally the biggest culprit could be there’s too much US Government debt and it’s draining the banks’ reserve accounts. Imagine that!

Your Broke Ass Uncle Sam

In conclusion can we at long last dispense with the old government-debt-doesn’t-effect-private-credit argument?

Asking A Question

I don’t like to take positions so I’ll ask this as a question.

Drunken Sailors

Isn’t it a travesty that so called conservatives have jumped on the all night drunken binge boat with usually spendthrift democrats?

Thanks Republicans!

As a result we wonder, weren’t Republicans and Tea Party Trumpers for spending less and limiting the power of government?

Nero Fiddled…

Could they be playing Nero while Rome starts burning?

Where’s That Graveyard

Are we whistling past the graveyard again? Only time will tell.

Sponsored by Reliafund Payment Processors and Ryan Plumbing and Heating of Saint Paul

US-Debt-Kills-Repo-Markets?-Bob Davis Podcast 885

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Economic-Boom-Smoke-And-Mirrors?-Bob Davis Podcast 872

Economic-Boom-Smoke-And-Mirrors?-Bob Davis Podcast 872

Everyone Gets An Award. So What?

These days we live in a world where everyone gets an award for participation. Every now and then reality intrudes on our blissful paradise. We’ll talk about the 3rd quarter GDP numbers and what they mean in Economic-Boom-Smoke-And-Mirrors?-Bob Davis Podcast 872.

Ballyhoo and BS

We’ve been the victims of economic ballyhoo at least since 2016. Even more for years since the recession of 2008 we’ve been sold all kinds of snake oil. Green Shoots. The Light At The End Of The Tunnel. Priming The Pump. Economic Boom!

GDP Is The Yardstick

Gross Domestic Product is the yardstick by which we measure the economic performance of the world’s countries. This is especially relevant in the United States, where we will choose a new president and congress in 2020.

How Are We Doing?

Economy is one of the yard sticks by which we determine how our leaders ‘are doing’ at their jobs.

Third Quarter

Therefore when the third quarter GDP numbers came out this week, we now have a third data point on which to judge US economic performance in 2019.

Smoke and Mirrors?

How are we doing? We’ll find out in Economic-Boom-Smoke-And-Mirrors?-Bob Davis Podcast 872.

What’s A Boom?

First of all exactly what does an economic ‘boom’ look like and are we really living through one?

What About All The Other Stats?

Second, what about other measurements like employment, government spending, consumer spending and productivity?

Concentrate On Outcomes

I have often described my mission with these podcasts as a quest to concentrate on outcomes and relatively objective analysis of those outcomes.

No Predictions

Above all I avoid predictions. I won’t use superlatives to describe how great or bad things are. I do not want tell listeners what they’re supposed to think or advocate for.

More Questions

In conclusion, these new numbers raise more questions than answers.

In addition, what about inflation, business investment and growth in the future.

Moreover what about intervention by central banks?

I wonder, if there’s an economic boom why do we need so much government spending and interventions to keep it going? What about the enormous spending deficits and public debt?

Meeting Challenges

Finally what are the biggest economic and therefore social challenges ahead. Are we on path to address those challenges?

I don’t hear too much talk about that on the campaign trail, in government and in the media.

Sponsored by John D. Scott Personal Injury Lawyer and Hoffman Hamer and Associates

Economic-Boom-Smoke-And-Mirrors?-Bob Davis Podcast 872

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Recession-Warning-Media-Confusion-Bob Davis Podcast 855

Recession-Warning-Media-Confusion-Bob Davis Podcast 855

What Is All This Talk About Recession

These days it’s hard to tell who to believe. In many ways it’s the best economy ever. The best time to look for a job. An unprecedented economic boom. Why is everyone suddenly talking about a recession. Learn more in Recession-Warning-Media-Confusion-Bob Davis Podcast 855.

Not Making Predictions

First of all I am not here to tell you the economy is in the tank, or that it is booming.

Recession! Depression! Do I have Your Attention Now?

Truth is if you put the words recession, bust, or depression in an article you’re going to get people’s attention. In addition it doesn’t hurt to have a couple of historic drops in the stock market.

Now that I have your attention…Listen to Recession-Warning-Media-Confusion-Bob Davis Podcast 855.

Market Drops and Yield Curves Mean New Media Story Lines

It doesn’t matter if the markets recover from those drops.

What matters is now the media has a story line that predicts doom and destruction.

Fool’s Errand

Especially relevant is a lesson I learned a long time ago. It doesn’t matter how well informed a commentator might be. Making predictions about a force of nature like the world’s largest economy, is a fool’s errand.

Shallow Expansion, Debt and Slowing Growth

Even more, it is true our economy is growing and we are enjoying the longest economic expansion in memory. It’s also true it’s a shallow expansion and that growth just above the inflation line, isn’t really booming. Moreover, the expansion is getting pretty long in the tooth, as the say.

There Is A Season

In contrast like the seasons, economies operate on a cycle. Truth is anyone who predicts a recession will ultimately be right. Just like fall into winter recessions have a purpose. Economic contractions kill off the weak plants and animals and insects so the strong and grow again in the spring.

So when the yield curve inverts and the market drops it is certainly worth paying attention.

Seems like we’re missing something though. While the politicians and talking heads trade insults about who’s predictions are right, what are we thinking about?

Election Year Economics

In conclusion what plans to we the people have for the future economy of the United States. I sat down to do a podcast on the yield curve, claims about unemployment and recession predictions. I ended up with an essay on the pitfalls of talking economy in an election year, the ballyhoo on the current economy when the real questions aren’t even being asked. Let alone answered.

It’s 1950 In America…Coal Mines and Manufacturing, right?

Where are we going? What are we trying to accomplish? What kind of economy do we expect in the future. Is it really manufacturing jobs in Ohio and Coal Mines in West Virginia?

Sponsored by Ryan Plumbing and Heating of Saint Paul and Reliafund Payment Processors

Recession-Warning-Media-Confusion-Bob Davis Podcast 855

 

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