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Deutsche Bank: There's A Massive Credit Spigot About To Superpower The U.S. Economy
The Business Insider ^ | 11-11-2010 | Gregory White

Posted on 11/11/2010 10:33:55 AM PST by blam

Deutsche Bank: There's A Massive Credit Spigot About To Superpower The U.S. Economy

Gregory White
Nov. 11, 2010, 11:57 AM

The U.S. is on the brink of a massive credit explosion, brought on by quantitative easing and a willingness for banks to lend, according to Deutsche Bank.

This bullish call on the U.S. consumer and broader U.S. economy stems from a series of charts that point to new spending for those in the U.S. and a new willingness for banks to lend.

This goes in opposition to the data released by the New York Fed this week that suggested consumer demand for credit was collapsing because individuals were choosing to deleverage, rather than spend.

But Deutsche Bank begs to differ. The say, "The Credit Crunch Is Over" and now the demand for loans is about to kick off.

Click here for the charts >

[snip]

(Excerpt) Read more at businessinsider.com ...


TOPICS: Business/Economy; News/Current Events
KEYWORDS: credit; economy; recession; spending
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1 posted on 11/11/2010 10:34:03 AM PST by blam
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To: blam
On what possible basis do they forecast a renewed credit binge in a still over-leveraged economy other than even cheaper money?
2 posted on 11/11/2010 10:36:36 AM PST by casuist (Audi alteram partem.)
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To: blam

Yah,right! (SARC)


3 posted on 11/11/2010 10:36:59 AM PST by marychesnutfan
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To: blam

I think if the bamster coes back and signs legislation for the keeping the tax cuts intact, that WILL move markets...and have businesses borrowing to some extent.


4 posted on 11/11/2010 10:39:27 AM PST by SueRae (I can see November 2012 from my HOUSE!!!!!!!!)
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To: blam
Oh, heck yea! I saw a guy on the corner with one of those signs saying “Loans here!” He was dressed in a dollar sign costume and waving at traffic. He was competing with the guy in the sombrero for the Mexican restaurant next door to the bank, but it was a busy corner.

I'm running out Monday for a 2 million dollar loan for a chain of worm farm stores. I got the idea from the movie Dumb and Dumber. After all, two years left with Obama in the White House, it's all good times from here on out.

5 posted on 11/11/2010 10:39:27 AM PST by IrishCatholic (No local Communist or Socialist Party Chapter? Join the Democrats, it's the same thing!)
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To: casuist
For one thing, tax cuts are about to be extended.

And there's reason to believe that this will be for the wealthy as well.

Which means unemployment is going down.

6 posted on 11/11/2010 10:40:19 AM PST by Siena Dreaming
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To: blam

Like this country needs more debt


7 posted on 11/11/2010 10:40:54 AM PST by GeronL (http://libertyfic.proboards.com <--- My Fiction/ Science Fiction Board)
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To: SueRae
"... I think if the bamster coes back and signs legislation for the keeping the tax cuts intact, that WILL move markets...and have businesses borrowing to some extent."

And then there we'll all be right back in 2003 when the Bush economists were frantically trying to get Americans to further in-debt themselves by purchasing high dollar luxury items: Buy a car! Buy a home! Buy a new big screen HDTV!

I've seen this movie before, but I'm not allowed to walk out of the theater.

8 posted on 11/11/2010 10:43:45 AM PST by The KG9 Kid
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To: blam

They make it sound like a colonoscopy!


9 posted on 11/11/2010 10:44:30 AM PST by RexBeach
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To: GeronL

What you said.


10 posted on 11/11/2010 10:44:43 AM PST by The KG9 Kid
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To: IrishCatholic

***I’m running out Monday for a 2 million dollar loan for a chain of worm farm stores.***

Thirty years ago worm farms were popular in NW Arkansas. Two years later you couldn’t find a worm farm anywhere. It was a scam like selling soap and rasing chinchillas or emus.


11 posted on 11/11/2010 10:44:44 AM PST by Ruy Dias de Bivar (I visited GEN TOMMY FRANKS Military Museum in HOBART, OKLAHOMA! Well worth it!)
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To: IrishCatholic

As for me? I got my retirement in tulips!


12 posted on 11/11/2010 10:46:16 AM PST by Ruy Dias de Bivar (I visited GEN TOMMY FRANKS Military Museum in HOBART, OKLAHOMA! Well worth it!)
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To: blam

Yeah all those millions and millions who sold their homes at a loss, were foreclosed on, declared bankruptcy or walked away.....yeah they are going to go get a brand spanking new loan to play the scam again.

And then there are the tens of millions who have diligently continued to pay their mortgage while the value of their home has fallen and is under water. Will the banks refi or give a new loan to a home that is worth 25% - 30% less than it was just a few years ago?

I don’t think so.

I think a return to predatory lending and rampant loan shark brokers is going to do nothing but infuriate people even more.

America is angry and will stay that way until they get real justice as to what the banks and Fed have done to them.


13 posted on 11/11/2010 10:46:52 AM PST by Hostage
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To: blam

“The U.S. is on the brink of a massive credit explosion, . . .”

Thank goodness. We’ve never had one before and it’s a surefire way to guarantee long term prosperity.


14 posted on 11/11/2010 10:47:58 AM PST by ModelBreaker
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To: Siena Dreaming

I think history would predict otherwise. The so-called extension of the Bush era tax cuts will not be experienced as a cut, or even as the extension of a cut. It won’t experienced at all because it doesn’t change anything; it leaves things as they are. It releases no productive capital; it raises no ones income; it creates no new spending power or potential for investment. It simply doesn’t take any of those things away which is a good thing in itself only in the sense that it is not a harmful thing.

And if you want to argue that the extension removes uncertainty I think the President’s deficit commission just went a long way toward restoring whatever uncertainty the President’s wise and timely capitulation on the tax front may have resolved.

Anyway, whatever. Aren’t these the same Germans who were shrieking aloud about how debasing our currency is the wrong course of action? Now their central bank heralds the move as the restoration of a golden age of consumer spending to fuel anew German export production? Does something sound a little wrong to you?—because it sure does to me.


15 posted on 11/11/2010 10:47:58 AM PST by casuist (Audi alteram partem.)
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To: blam

I would believe Deutsche Bank WHY?:

UN Secretary General Ban Ki-moon appointed the panel, called the High-Level Advisory Group on Climate Change Financing, in February. It’s led by Stoltenberg and Ethiopian Prime Minister Meles Zenawi. The 21-member group also includes Soros, Summers and Deutsche Bank AG Vice Chairman Caio Koch- Weser.
(Bloomberg)

Yeah right.

The game is out in the open boys.


16 posted on 11/11/2010 10:52:08 AM PST by Marty62 (Marty 60)
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To: The KG9 Kid

It’s like we just checked ourselves into rehab only to find an open bar waiting for us at reception. Drink up, losers.


17 posted on 11/11/2010 10:52:49 AM PST by casuist (Audi alteram partem.)
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To: casuist
And if you want to argue that the extension removes uncertainty I think the President’s deficit commission just went a long way toward restoring whatever uncertainty

Yes, it removes some anxiety about the anti-business bias that the Gov't had been operating under. It injects some hope (along with the the large majority in the House) that from here on in the Gov't will loose some of those chains which have been causing business to hoard capital and not expand.

As far as the deficit panel, I see a recommendation there to lower corporate taxes. I don't see that as a negative for the unemployment situation.

18 posted on 11/11/2010 10:55:56 AM PST by Siena Dreaming
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To: ModelBreaker
Thank goodness. We’ve never had one before and it’s a surefire way to guarantee long term prosperity.
I'll say. And I only use crystal-meth socially. I've got it completely under control.
19 posted on 11/11/2010 10:56:12 AM PST by casuist (Audi alteram partem.)
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To: casuist

It may usher in relatively more prosperity. In Germany.


20 posted on 11/11/2010 11:00:48 AM PST by arthurus (Read Hazlitt's "Economics In One Lesson.")
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