Posts Tagged ‘banks’

Leveraged Loans defined:

“…arranged by a syndicate of banks, to companies that are heavily indebted or have weak credit ratings.” -IMF

“…are effectively provided to companies already swimming in debt.” -Nomi Prins

“That was all good and well when interest rates were super low, making it easier for companies to borrow oodles of money,”

“This year, leveraged loan issuance reached an annual rate of $745 billion. That’s nearly the same as the prior record of $762 billion in 2007 before the financial crisis and just a bit less than last year’s record of $788 billion globally.”

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“Contrary to popular belief (and most economics textbooks), when banks make loans, they don’t dip into cash in their vaults… or into other customers’ deposits…  Instead, they loan new money into existence.” -Chris Lowe

“Commercial banks operated on sound classical principles. It’s a different story these days. Central banks and commercial banks are essentially Ponzi schemes, and engines of inflation. It’s a major reason the rich are getting richer—which is OK, except that today it’s at the expense of the middle class.” -Doug Casey

Banks are keeping billions of dollars from Americans…  Right now, according to the Financial Industry Regulatory Authority, about $350 billion is sitting in brokerage accounts earning an average of 0.12%. That’s about $420 million in interest.  But if all those people with that cash just sitting there moved it to an account earning 1%, the interest earning soars to $3.5 billion a year.  That’s like leaving nearly $3.4 billion in free money on the table.  Make your money work for you.  Stop letting these banks steal your interest.” -David Eifrig

“The inflation process is the increase of the money supply.” L. Carlos Lara

“The actual process of money creation takes place primarily in banks.” -Federal Reserve Bank of Chicago

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“Here’s a chart based on research from the Economic Policy Institute that describes the problem. As you can see, productivity in this country grew nearly 250% between 1948 and 2014, but median wages only grew 109%…You’ll also notice that the divergence begins around 1971… the year President Nixon removed the U.S. dollar from gold.

Why? Because paper money doesn’t transmit gains in productivity like real, sound money should.

In short, when the dollar was unlinked from gold, the government was granted the ability to create unlimited amounts of new money. But this money doesn’t flow to everyone equally. It is created in the banks, and then works its way through the financial system before eventually trickling down through the real economy. The result is that asset and consumer prices have risen far faster than wages.” -Justin Brill

“Politicians all over the world are predicting that banks will charge depositors (you) money for storing cash in negative interest rate currencies.  It’s a perversion of saving.  It’s a perversion of capitalism.  It’s a perversion of planning for the future.” -Brian Hunt