A Waiting Game
A few thoughts on why the Banks are not lending. By Golem XIV.
Governments, so they tell us, want the banks to lend into the real economy to get people working, earning, buying and paying both their taxes and their debts. Problem is, I do not think the financial industry shares this desire. They say they do. They say they are doing their bit. But they are not. The abject failure of the UK’s 2011 ‘Project Merlin’ is a good example. Project Merlin was the voluntary agreement between UK banks and government to set and meet targets for lending to small and medium businesses. The big five UK banks all agreed to lend. The data showed, however, that they all lent less in every quarter. I talked to the CEO of a UK bank which specializes in raising capital for medium sized businesses and he told me there was less and less funding around. He said the big banks and the big funds simply didn’t want to know. They had other plans.
Faber-Expect 10% drop in the SPX and then the QE3
According to Marc Faber ” we’re in the late stage of a mature market and not a new bull.”
Faber expects the S&P to drop 10%, but of course, then it is time for QE3….
Video below.
Paradiso by Lampa de Dashboard
Guest post by Peter Tchir.
Last call is approaching in Europe. It’s getting late, everyone is getting tired, the dance floor is crowded and people are making their move. I can’t get that image out of my head and I can’t help but think that Meatloaf, of all people, sums up where the market is right now:
GIRL:
I gotta know right now
Do you love me?
Will you love me forever?
Do you need me?
Will you never leave me?
Will you make me so happy for the rest of my life?
Will you take me away and will you make me your wife?
I gotta know right now!
Before we go any further
Do you love me?
And will you love me forever?
BOY:
Let me sleep on it
Baby, baby let me sleep on it
Let me sleep on it
And I’ll give you an answer in the morning
Let me sleep on it
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