PeakOil is You
The Black Monday thread
Re: The Black Monday thread
by Tanada » Wed 26 Aug 2015, 09:13:09
$this->bbcode_second_pass_quote('radon1', 'D')oes it come to mind that banks do not invest into the "real economy" because there is nowhere to invest profitably in the "real economy".
The "real economy" comes from books that are so thoroughly cooked it is exceedingly difficult to know what is really going on. Playing with deposit numbers at the Fed bank in your district is easy and the book keeping is simple, why invest in risk when you can invest in safe and still earn money?
$this->bbcode_second_pass_quote('Alfred Tennyson', 'W')e are not now that strength which in old days
Moved earth and heaven, that which we are, we are;
One equal temper of heroic hearts,
Made weak by time and fate, but strong in will
To strive, to seek, to find, and not to yield.
Moved earth and heaven, that which we are, we are;
One equal temper of heroic hearts,
Made weak by time and fate, but strong in will
To strive, to seek, to find, and not to yield.
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Re: The Black Monday thread
by davep » Wed 26 Aug 2015, 10:05:23
$this->bbcode_second_pass_quote('radon1', 'D')oes it come to mind that banks do not invest into the "real economy" because there is nowhere to invest profitably in the "real economy".
I think that's correct to an extent. If interest rates are so low, banks are better served investing elsewhere rather than lending money (this can be seen by the panic in the stock market at the merest hint of higher interest rates, where banks would move back to lending rather than inflating the stock market bubble).
But having nowhere to (more) profitably lend just makes the state of the real economy even worse.
What we think, we become.
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Re: The Black Monday thread
by ennui2 » Wed 26 Aug 2015, 10:08:32
$this->bbcode_second_pass_quote('Tanada', '')$this->bbcode_second_pass_quote('radon1', 'D')oes it come to mind that banks do not invest into the "real economy" because there is nowhere to invest profitably in the "real economy".
The "real economy" comes from books that are so thoroughly cooked it is exceedingly difficult to know what is really going on. Playing with deposit numbers at the Fed bank in your district is easy and the book keeping is simple, why invest in risk when you can invest in safe and still earn money?
There's plenty of investment potential in high-tech these days, and lots of money flowing into it.
"If the oil price crosses above the Etp maximum oil price curve within the next month, I will leave the forum." --SumYunGai (9/21/2016)
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