Comments on: Charts of the day: US macro disequilibria http://www.creditwritedowns.com/2008/10/charts-of-day-us-macro-disequilibria.html a finance news and opinion site Fri, 19 Mar 2010 15:42:00 +0000 hourly 1 By: D-Process « U.Pro.Fishhttp://www.creditwritedowns.com/2008/10/charts-of-day-us-macro-disequilibria.html#comment-9059 D-Process « U.Pro.Fish Sat, 09 Jan 2010 10:15:16 +0000 http://www.creditwritedowns.com/2008/10/charts-of-the-day-us-macro-disequilibria.html#comment-9059 [...] a bit of help, and economy gets going again. In current recession, inventory is a side problem and balance sheet is the core problem. Just as inventory problem will not be solved until inventory is destocked, [...] [...] a bit of help, and economy gets going again. In current recession, inventory is a side problem and balance sheet is the core problem. Just as inventory problem will not be solved until inventory is destocked, [...]

]]> By: The year in review at Credit Writedowns – Kleptocracy - Credit Writedownshttp://www.creditwritedowns.com/2008/10/charts-of-day-us-macro-disequilibria.html#comment-9037 The year in review at Credit Writedowns – Kleptocracy - Credit Writedowns Sat, 09 Jan 2010 06:19:05 +0000 http://www.creditwritedowns.com/2008/10/charts-of-the-day-us-macro-disequilibria.html#comment-9037 [...] The important thing to realize here is that ideology is a tool used to control the masses while those in power re-distribute to themselves. Diamond was probably talking here about ancient societies: the Mayans, Incas, the Greeks, the Romans, Easter Island. But, it does apply quite well to the modern-day. After all, in the U.S. average hourly earnings peaked more than 35 years ago. And we can see that most of the economic gains of the last two decades has been an illusion masked by gobs of debt. [...] [...] The important thing to realize here is that ideology is a tool used to control the masses while those in power re-distribute to themselves. Diamond was probably talking here about ancient societies: the Mayans, Incas, the Greeks, the Romans, Easter Island. But, it does apply quite well to the modern-day. After all, in the U.S. average hourly earnings peaked more than 35 years ago. And we can see that most of the economic gains of the last two decades has been an illusion masked by gobs of debt. [...]

]]> By: Turning Japanese and understanding the consequence of policy half-measures | Liberal vs Liberalhttp://www.creditwritedowns.com/2008/10/charts-of-day-us-macro-disequilibria.html#comment-4725 Turning Japanese and understanding the consequence of policy half-measures | Liberal vs Liberal Thu, 16 Apr 2009 14:31:21 +0000 http://www.creditwritedowns.com/2008/10/charts-of-the-day-us-macro-disequilibria.html#comment-4725 [...] because the underlying fundamentals of the U.S. and global economies remain poor (See my post on macro disequilibria to see [...] [...] because the underlying fundamentals of the U.S. and global economies remain poor (See my post on macro disequilibria to see [...]

]]> By: John Creightonhttp://www.creditwritedowns.com/2008/10/charts-of-day-us-macro-disequilibria.html#comment-1404 John Creighton Sat, 20 Dec 2008 00:20:54 +0000 http://www.creditwritedowns.com/2008/10/charts-of-the-day-us-macro-disequilibria.html#comment-1404 Don’t reduce leverage. Ease the Capital requirements, but index it by inflation. Thus as inflation starts to kick in the capital requirements become more stringent so that the real value of the capital held by the banks remains constant. Set some floor in the capital requirements so that in a highly inflated economy you cannot lend out more then five times your equity but in a deflated economy you can leverage to the extreme (say 50 times equity) or more. Then when the next downturn hits only help out the banks that were able to stay within the capital requirement rules. Don’t reduce leverage. Ease the Capital requirements, but index it by inflation. Thus as inflation starts to kick in the capital requirements become more stringent so that the real value of the capital held by the banks remains constant. Set some floor in the capital requirements so that in a highly inflated economy you cannot lend out more then five times your equity but in a deflated economy you can leverage to the extreme (say 50 times equity) or more. Then when the next downturn hits only help out the banks that were able to stay within the capital requirement rules.

]]> By: Edward Harrisonhttp://www.creditwritedowns.com/2008/10/charts-of-day-us-macro-disequilibria.html#comment-489 Edward Harrison Mon, 20 Oct 2008 17:36:00 +0000 http://www.creditwritedowns.com/2008/10/charts-of-the-day-us-macro-disequilibria.html#comment-489 Thanks, stevie b. As you know, I am back. And I do think the financial services chart is where the rubber hits the road. Leverage is the key to this problem in the U.S. and elsewhere.<br/><br/>How we reduce leverage globally without creating some major short-term economic dislocations is the $64,000 question. Thanks, stevie b. As you know, I am back. And I do think the financial services chart is where the rubber hits the road. Leverage is the key to this problem in the U.S. and elsewhere.

How we reduce leverage globally without creating some major short-term economic dislocations is the $64,000 question.

]]> By: Stevie b.http://www.creditwritedowns.com/2008/10/charts-of-day-us-macro-disequilibria.html#comment-486 Stevie b. Fri, 17 Oct 2008 13:07:00 +0000 http://www.creditwritedowns.com/2008/10/charts-of-the-day-us-macro-disequilibria.html#comment-486 Edward - for me the second chart really rams it all home. I thought (much too early and an awful lot of years ago)that it was all too much - but who ever knew how much was too much? Well we know now! Enjoy your break! Edward – for me the second chart really rams it all home. I thought (much too early and an awful lot of years ago)that it was all too much – but who ever knew how much was too much? Well we know now! Enjoy your break!

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