{"id":451458,"date":"2010-03-20T11:20:46","date_gmt":"2010-03-20T15:20:46","guid":{"rendered":"http:\/\/mortgagenewsclips.com\/2010\/03\/20\/money-and-markets-money-velocity-1-gets-you-79-cents-best-deficit-chart-mbs-purchases-tax-credits-credit-feast-spread-compression-rating-agencies-krugman-and-kudlow\/"},"modified":"2010-03-20T11:20:46","modified_gmt":"2010-03-20T15:20:46","slug":"money-and-markets-money-velocity-1-gets-you-79-cents-best-deficit-chart-mbs-purchases-tax-credits-credit-feast-spread-compression-rating-agencies-krugman-and-kudlow","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/451458","title":{"rendered":"Money and Markets: Money Velocity, $1 Gets You 79 Cents, Best Deficit Chart, MBS Purchases, Tax Credits, Credit Feast, Spread Compression, Rating Agencies, Krugman and Kudlow"},"content":{"rendered":"<p><a href=\"http:\/\/billcoppedge.com\/\"><img loading=\"lazy\" decoding=\"async\" style=\"border-right-width: 0px; display: inline; border-top-width: 0px; border-bottom-width: 0px; border-left-width: 0px\" title=\"bill-coppedge-dec09-1\" border=\"0\" alt=\"bill-coppedge-dec09-1\" src=\"http:\/\/mortgagenewsclips.com\/wp-content\/uploads\/2010\/03\/billcoppedgedec09125.jpg\" width=\"82\" height=\"122\" \/><\/a> <a href=\"http:\/\/mortgagenewsclips.com\/\"><img loading=\"lazy\" decoding=\"async\" style=\"border-right-width: 0px; display: inline; border-top-width: 0px; border-bottom-width: 0px; border-left-width: 0px\" title=\"original content selection by MortgageNewsClips.com\" border=\"0\" alt=\"original content selection by MortgageNewsClips.com\" src=\"http:\/\/mortgagenewsclips.com\/wp-content\/uploads\/2010\/03\/originalcontentselectionbyMortgageNewsClips.com25.jpg\" width=\"300\" height=\"63\" \/><\/a> <\/p>\n<p>&#160;<\/p>\n<p><a href=\"http:\/\/www.frontlinethoughts.com\/printarticle.asp?id=mwo031210\"><img loading=\"lazy\" decoding=\"async\" style=\"border-right-width: 0px; display: inline; border-top-width: 0px; border-bottom-width: 0px; border-left-width: 0px\" title=\"jm1\" border=\"0\" alt=\"jm1\" src=\"http:\/\/mortgagenewsclips.com\/wp-content\/uploads\/2010\/03\/jm1.png\" width=\"329\" height=\"242\" \/><\/a> <a href=\"http:\/\/mortgagenewsclips.com\/wp-content\/uploads\/2010\/03\/johnmauldinfrontline11.gif\"><img loading=\"lazy\" decoding=\"async\" style=\"border-right-width: 0px; display: inline; border-top-width: 0px; border-bottom-width: 0px; border-left-width: 0px\" title=\"john-mauldin-frontline1\" border=\"0\" alt=\"john-mauldin-frontline1\" src=\"http:\/\/mortgagenewsclips.com\/wp-content\/uploads\/2010\/03\/johnmauldinfrontline1_thumb1.gif\" width=\"221\" height=\"39\" \/><\/a> <\/p>\n<p><strong>The Implications of Velocity<\/strong> &#8211; &#8230;And now we come to the policy conundrum for the Fed. They have pumped a great deal of money (liquidity) into the economy. Normally<strong>, banks would take that money and multiply it by lending it out<\/strong> (through fractional reserve banking at a potential 9-times factor), increasing velocity and the overall money supply. &#8230;<strong> But today bank lending is still falling at an average of 15% annually, so far this year. But what if that trend stops? &#8230;<\/strong> &#8211; <a href=\"http:\/\/www.frontlinethoughts.com\/printarticle.asp?id=mwo031210\">John Mauldin&#8217;s Frontline Thoughts<\/a> <\/p>\n<p>&#8212;&#8212;&#8212;&#8212;<\/p>\n<p><a href=\"http:\/\/mortgagenewsclips.com\/wp-content\/uploads\/2010\/03\/zerohedge12.png\"><img loading=\"lazy\" decoding=\"async\" style=\"border-right-width: 0px; display: inline; border-top-width: 0px; border-bottom-width: 0px; border-left-width: 0px\" title=\"zerohedge\" border=\"0\" alt=\"zerohedge\" src=\"http:\/\/mortgagenewsclips.com\/wp-content\/uploads\/2010\/03\/zerohedge_thumb12.png\" width=\"176\" height=\"50\" \/><\/a> <\/p>\n<p>Deflation? &#8211; <strong>M1 Money Multiplier Still Crashing:<font color=\"#ff0000\"> Each $1 Increase in Monetary Base Results in Only 79 Cent Increase In Money Supply<\/font><\/strong> &#8211; George Washington &#8211; <a href=\"http:\/\/www.zerohedge.com\/article\/m1-money-multiplier-still-crashing-each-1-increase-monetary-base-results-only-79-cent-increa\">ZeroHedge<\/a> <\/p>\n<p>&#8212;&#8212;&#8212;&#8212;<\/p>\n<p><a href=\"http:\/\/www.caseyresearch.com\/displayCdd.php?id=372\"><img loading=\"lazy\" decoding=\"async\" style=\"border-right-width: 0px; display: inline; border-top-width: 0px; border-bottom-width: 0px; border-left-width: 0px\" title=\"cr1\" border=\"0\" alt=\"cr1\" src=\"http:\/\/mortgagenewsclips.com\/wp-content\/uploads\/2010\/03\/cr11.jpg\" width=\"374\" height=\"255\" \/><\/a> <a href=\"http:\/\/mortgagenewsclips.com\/wp-content\/uploads\/2010\/03\/caseysdailydispatch.png\"><img loading=\"lazy\" decoding=\"async\" style=\"border-right-width: 0px; display: inline; border-top-width: 0px; border-bottom-width: 0px; border-left-width: 0px\" title=\"caseys-daily-dispatch\" border=\"0\" alt=\"caseys-daily-dispatch\" src=\"http:\/\/mortgagenewsclips.com\/wp-content\/uploads\/2010\/03\/caseysdailydispatch_thumb.png\" width=\"200\" height=\"63\" \/><\/a> <\/p>\n<p><strong>The Best Deficit Chart Ever &#8211; plus fantastic comment<\/strong> &#8211; <a href=\"http:\/\/www.caseyresearch.com\/displayCdd.php?id=372\">Casey&#8217;s Daily Dispatch<\/a> <\/p>\n<p>&#8212;&#8212;&#8212;&#8212;<\/p>\n<p><a href=\"http:\/\/mortgagenewsclips.com\/wp-content\/uploads\/2010\/03\/phillycomphilainquirer.png\"><img loading=\"lazy\" decoding=\"async\" style=\"border-right-width: 0px; display: inline; border-top-width: 0px; border-bottom-width: 0px; border-left-width: 0px\" title=\"philly-com-phila-inquirer\" border=\"0\" alt=\"philly-com-phila-inquirer\" src=\"http:\/\/mortgagenewsclips.com\/wp-content\/uploads\/2010\/03\/phillycomphilainquirer_thumb.png\" width=\"182\" height=\"65\" \/><\/a> <\/p>\n<p><strong>good consumer article &#8211; Program&#8217;s end to affect interest rates<\/strong> &#8211; By Alan J. Heavens     <br \/>&#8211; The Fed will no longer buy mortgage-backed securities from Fannie Mae and Freddie Mac. &#8211; <a href=\"http:\/\/www.philly.com\/philly\/business\/personal_finance\/20100317_Program_s_end_to_affect_interest_rates.html\">Philadelphia Inquirer<\/a> <\/p>\n<p>&#8212;&#8212;&#8212;&#8212;<\/p>\n<p><a href=\"http:\/\/mortgagenewsclips.com\/wp-content\/uploads\/2010\/03\/affordable.png\"><img loading=\"lazy\" decoding=\"async\" style=\"border-right-width: 0px; display: inline; border-top-width: 0px; border-bottom-width: 0px; border-left-width: 0px\" title=\"affordable\" border=\"0\" alt=\"affordable\" src=\"http:\/\/mortgagenewsclips.com\/wp-content\/uploads\/2010\/03\/affordable_thumb.png\" width=\"109\" height=\"142\" \/><\/a> <\/p>\n<p><strong>Freddie Keeps Tax Credits, Focuses on Preservation<\/strong> &#8211; By Jerry Ascierto &#8211; &#8230;&#160;&#160; Throughout 2009, <strong>rumors abounded that both government-sponsored enterprises<\/strong> (GSEs) Freddie Mac and Fannie Mae <strong>were trying to sell parts or all of their low-income housing tax credit (LIHTC) portfolios.<\/strong>&#160; The rumors sent chills through the affordable housing industry, given how dramatically the prices of LIHTCs had fallen. &#8230; -&#160; <a href=\"http:\/\/www.housingfinance.com\/news\/aft\/031610-aft-Freddie-Keeps-Tax-Credits-Focuses-on-Preservation.htm\">Affordable Housing Finance at Housingfinance.com<\/a>&#160; <\/p>\n<p>&#8212;&#8212;&#8212;&#8212;<\/p>\n<p><a href=\"http:\/\/mortgagenewsclips.com\/wp-content\/uploads\/2010\/03\/forbes_home_logo1.gif\"><img loading=\"lazy\" decoding=\"async\" style=\"border-right-width: 0px; display: inline; border-top-width: 0px; border-bottom-width: 0px; border-left-width: 0px\" title=\"forbes_home_logo\" border=\"0\" alt=\"forbes_home_logo\" src=\"http:\/\/mortgagenewsclips.com\/wp-content\/uploads\/2010\/03\/forbes_home_logo_thumb1.gif\" width=\"154\" height=\"53\" \/><\/a> <\/p>\n<p><strong>Credit Feast And Famine<\/strong> &#8211; Steve Hanke &#8211;<strong> Why isn&#8217;t the economy booming? The Fed&#8217;s high-powered money isn&#8217;t going into bank deposits and loans to businesses and individuals.<\/strong> &#8211; <a href=\"http:\/\/www.forbes.com\/forbes\/2010\/0329\/finance-economy-basel-accord-credits-incentive-point-of-view.html\">Forbes<\/a> <\/p>\n<p>&#8212;&#8212;&#8212;&#8212;<\/p>\n<p><a href=\"http:\/\/www.surlytrader.com\/forest-for-the-trees\/\"><img loading=\"lazy\" decoding=\"async\" style=\"border-right-width: 0px; display: inline; border-top-width: 0px; border-bottom-width: 0px; border-left-width: 0px\" title=\"surly1\" border=\"0\" alt=\"surly1\" src=\"http:\/\/mortgagenewsclips.com\/wp-content\/uploads\/2010\/03\/surly11.jpg\" width=\"345\" height=\"250\" \/><\/a> <a href=\"http:\/\/mortgagenewsclips.com\/wp-content\/uploads\/2010\/03\/surlytrader4.png\"><img loading=\"lazy\" decoding=\"async\" style=\"border-right-width: 0px; display: inline; border-top-width: 0px; border-bottom-width: 0px; border-left-width: 0px\" title=\"surly-trader\" border=\"0\" alt=\"surly-trader\" src=\"http:\/\/mortgagenewsclips.com\/wp-content\/uploads\/2010\/03\/surlytrader_thumb4.png\" width=\"192\" height=\"51\" \/><\/a> <\/p>\n<p><strong>Forest for the Trees\u2026 &#8211; &#8230; What seems frightening about the compression of credit spreads is that we seem to completely forget the past.<\/strong>&#160; The post Lehman collapse has no parallel besides the great depression, but it seems that we all have forgiven past financial sins and debt burdens.&#160; The overhanging question remains: how will the debt be paid for?&#160; &#8230; &#8211; <a href=\"http:\/\/www.surlytrader.com\/forest-for-the-trees\/\">Surly Trader<\/a> <\/p>\n<p>&#8212;&#8212;&#8212;&#8212;<\/p>\n<p><a href=\"http:\/\/mortgagenewsclips.com\/wp-content\/uploads\/2010\/03\/designingbetterfutures.png\"><img loading=\"lazy\" decoding=\"async\" style=\"border-right-width: 0px; display: inline; border-top-width: 0px; border-bottom-width: 0px; border-left-width: 0px\" title=\"designing-better-futures\" border=\"0\" alt=\"designing-better-futures\" src=\"http:\/\/mortgagenewsclips.com\/wp-content\/uploads\/2010\/03\/designingbetterfutures_thumb.png\" width=\"293\" height=\"61\" \/><\/a> <\/p>\n<p><strong>Rating Agencies: Muni bonds next?<\/strong> &#8211; Nick Gogerty &#8211; Ratings game change. A disturbance in the force? &#8211; The ratings agencies are the fell as whose opinions on CDO\u2019s and other quant-crap led most of America\u2019s financial elite to delude themselves into believing in the pixi dust of securitisation (obfuscation) and endless home price appreciation. &#8211; <a href=\"http:\/\/www.gogerty.com\/?p=1008\">Designing Better Futures<\/a> <\/p>\n<p>&#8212;&#8212;&#8212;&#8212;<\/p>\n<p><a href=\"http:\/\/mortgagenewsclips.com\/wp-content\/uploads\/2010\/03\/marketwatchkurtbrouwer.png\"><img loading=\"lazy\" decoding=\"async\" style=\"border-right-width: 0px; display: inline; border-top-width: 0px; border-bottom-width: 0px; border-left-width: 0px\" title=\"marketwatch-kurt-brouwer\" border=\"0\" alt=\"marketwatch-kurt-brouwer\" src=\"http:\/\/mortgagenewsclips.com\/wp-content\/uploads\/2010\/03\/marketwatchkurtbrouwer_thumb.png\" width=\"244\" height=\"53\" \/><\/a> <a href=\"http:\/\/mortgagenewsclips.com\/wp-content\/uploads\/2010\/03\/marketwatch1.png\"><img loading=\"lazy\" decoding=\"async\" style=\"border-right-width: 0px; display: inline; border-top-width: 0px; border-bottom-width: 0px; border-left-width: 0px\" title=\"marketwatch\" border=\"0\" alt=\"marketwatch\" src=\"http:\/\/mortgagenewsclips.com\/wp-content\/uploads\/2010\/03\/marketwatch_thumb1.png\" width=\"162\" height=\"53\" \/><\/a> <\/p>\n<p><strong>Krugman &amp; Kudlow agree: Inflation on the way<\/strong> &#8211; Kurt Brouwer &#8211;<strong> regarding Janet Yellen and Fed<\/strong> &#8211; &#8230; <strong>Krugman and Kudlow seem to view this appointment in a very similar light, that she will not be fighting inflation.&#160; Krugman likes that and Kudlow does not.&#160; Nonetheless, having these two economists and pundits in agreement on anything is rare indeed. &#8230;<\/strong> \u2013 <a href=\"http:\/\/blogs.marketwatch.com\/fundmastery\/2010\/03\/16\/krugman-kudlow-agree-inflation-on-the-way\/\">MarketWatch<\/a><\/p>\n<div class=\"feedflare\">\n<a href=\"http:\/\/feeds.feedburner.com\/~ff\/mortgagenewsclips\/qTBe?a=IgnwnvCCgM0:4nL-QSDxM-w:yIl2AUoC8zA\"><img decoding=\"async\" src=\"http:\/\/feeds.feedburner.com\/~ff\/mortgagenewsclips\/qTBe?d=yIl2AUoC8zA\" border=\"0\"><\/img><\/a> <a href=\"http:\/\/feeds.feedburner.com\/~ff\/mortgagenewsclips\/qTBe?a=IgnwnvCCgM0:4nL-QSDxM-w:D7DqB2pKExk\"><img decoding=\"async\" src=\"http:\/\/feeds.feedburner.com\/~ff\/mortgagenewsclips\/qTBe?i=IgnwnvCCgM0:4nL-QSDxM-w:D7DqB2pKExk\" border=\"0\"><\/img><\/a> <a href=\"http:\/\/feeds.feedburner.com\/~ff\/mortgagenewsclips\/qTBe?a=IgnwnvCCgM0:4nL-QSDxM-w:F7zBnMyn0Lo\"><img decoding=\"async\" src=\"http:\/\/feeds.feedburner.com\/~ff\/mortgagenewsclips\/qTBe?i=IgnwnvCCgM0:4nL-QSDxM-w:F7zBnMyn0Lo\" border=\"0\"><\/img><\/a> <a href=\"http:\/\/feeds.feedburner.com\/~ff\/mortgagenewsclips\/qTBe?a=IgnwnvCCgM0:4nL-QSDxM-w:V_sGLiPBpWU\"><img decoding=\"async\" src=\"http:\/\/feeds.feedburner.com\/~ff\/mortgagenewsclips\/qTBe?i=IgnwnvCCgM0:4nL-QSDxM-w:V_sGLiPBpWU\" border=\"0\"><\/img><\/a>\n<\/div>\n<p><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/feeds.feedburner.com\/~r\/mortgagenewsclips\/qTBe\/~4\/IgnwnvCCgM0\" height=\"1\" width=\"1\"\/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#160; The Implications of Velocity &#8211; &#8230;And now we come to the policy conundrum for the Fed. They have pumped a great deal of money (liquidity) into the economy. Normally, banks would take that money and multiply it by lending it out (through fractional reserve banking at a potential 9-times factor), increasing velocity and the [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-451458","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/451458","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/comments?post=451458"}],"version-history":[{"count":0,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/451458\/revisions"}],"wp:attachment":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/media?parent=451458"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/categories?post=451458"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/tags?post=451458"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}