As you may know, Mr. Mario Draghi is the
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| Economic ABC's |
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| Deflation? Hold on...!!! |
The purpose of quantitative easing programs is to lower interest rates and spur economic growth. Much as with the U.S. program, Mr. Draghi and the ECB are seriously concerned that European economies are tipping into deflation - a downward spiral of prices which wreaks havoc on economic markets, investments, wages, and employment.
Mr. Draghi, of course, is taking a great deal of heat from those economic robusterians, with heads of point, who have been wrong - now, for almost a decade! - about their interest rate predictions. Y'know those who keep raising the "sky-is-falling squawk" that hyper-inflation (obsessively called an "up 300 shock" and "interest rate risk" on Duke St.) is just around the corner and a threat to credit unions, world peace, and their credibility.
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| Q: What's the basis of your analysis? A: Well, ...because we said so! |
"There must be a statute of limitations for those who say there will be inflation. Some policymakers have been wrong for years, both on monetary and fiscal policy."
- Mario Draghi (1/21/2015)
Mr. Draghi also noted that the European quantitative easing will continue... "until we see a sustained adjustment in the path of inflation."
The smart money and the world's best economists believe the current course of interest rates is downward...
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| The NCUA Meow mIRRor.... |
... not sure "who" at NCUA is smarter than the rest of the world, are you?
(Think we could at least get a statute of limitations on a couple of "them"?)
6 comments:
Idjits!
If 300 is the international standard, could someone explain what a pretty plain vanilla credit union was asked to do a 500 point shock by the examiners?
Jim/All,
Should we credit unions push CUNA, NAFCU and any other of the trade associations to collaborate on a federal lawsuit? Also, how can they exclude our 1% deposit at NCUSIF? It is an asset that is available in liquidation before the insurance fund is tapped.
Georgia Birddog
Last check the "international standard" was 200 basis points not 300, let alone 500.
But as with making up metrics with IRR, a 60 vs. 90 day delinquency hurdle, ... standards don't always seem to apply.
Birddog,
Might want to take a look at Heather Anderson's latest opinion piece in CUTimes as a starting point for that discussion....
Birddog,
Carrie Hunt from NAFCU also has a good opinion piece in the CUJournal to add to the discussion of lawsuit or legislation...or neither!
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