Here is a rough transcription of the presentation for people who are hard of hearing. Apologies for the lack of grammar, I am working to improve the automated transcriptions -
hello on the day we worship the sun right let’s tidy sum stuff up will use a Doug short chart to start with it’s the S&P stock market 500 and the Federal reserve interventions over the last five and six years at the bottom we had the have the fed funds rate which kicked in hearing 2007 at over five but as the troubles started washed do could bomb their book is on the deck end of 2008 and is obviously still there and Janet Yellin told us yesterday that she doesn’t think it would be a terrifically bad idea if it stayed down there till the end of 2015 to B a seven year period with the fed funds rate on the debt right next up we have the ten-year Treasury yields are has been kept arm in the channel between 2% and 4% is currently at 2% the S&P has come from a highway in 2007 at near 1600 and and is now somewhere around about now is 14 and 1300 think it’s a lower but it’s not in the gutter now the these are the actions that have kept things going Things afloat but it’s not blog flogging a dead horse the horses still alive just arm what’s a better analogy walking in the snow to people walking in the snow and it’s freezing cold frostbite and you got to get from here to somewhere that’s a long way away and it’s snowing and it’s freezing cold and you just want to lay down in the snow and go to sleep but you know because you’re scientifically that way knowledgeable that if you do go to sleep in the snow you’ll wake up dead this is just keeping the partner going and hoping that they can keep going until they get to where they going or America will happens is eloquent this morning aren’t I right next number two from calculated risk the 30 year mortgage rate and the 15 year mortgage rate going back to 1970 you can see it went up as it always does to 1980 and has been on its way down ever since but look where it is now the 30 year I know it’s tricky to qualify for it but if you do qualify for it the 30 year is below four and the 15 year is an all-time low at three they are selling money like crazy there really going on discount that’s all there been doing all this chart is selling money there been able to excel it at top seasonal prices in the past but now it really got to be on discount price and that’s what this is and people still aren’t breaking the doors down right are New York Times lenders again dealing credit to risky clients Anette our leisure handle all just emerged from bankruptcy protection and doesn’t have a job and her car was repossessed last year still after spending her days jobhunting she returned to apartment in Brooklyn where in disbelief she sought through piles of credit card an auto loan offers that have come in the mail there trying to get it going again and or big banks need €485.6 billion for Basel capital rules the largest global banks would need would sorry would have needed an extra €500 billion in their call reserves to meet capital rolls the call reserves better deck capital requirements not reserve requirements capital requirements and standards been enforced last June 2 hundred and 12 lenders survey read would also have needed to find a combined €1.76 trillion in easy to sell assets to meet a minimum liquidity rules set by the Basel committee on banking supervision the group said today in a statement on its website the measures are scheduled to be phased in by 2019 and that’s another put the marker up the road can you get through the snow to get to the marker but that’s like you got to pick up all lots and lots of firewood before you get there and really load yourself down before you get to the marker global regulators have clashed with lenders over the severity of the capital and liquidity rules which were set out in 2010 as part of an overhaul banking regulation in the wake of the financial crisis that followed the collapse of Liman Bros Holdings Inc the measures known as Basel three will more than triple the core capital but lenders must hold at least 7% of their assets waited for risk tripled up to 7% when there’s nothing against them holding 30 or 40 or 50% only the just wouldn’t make so much profit number five US inflation year over year change in four different measures mainly from the Cleveland fed the got to put Cleveland fled heads in their anyway and median CPI and their trend but also in green is the core CPI Arsene DCE B and that’s with oil and food in their and the courts are CPI arm just like the different measures okay but basically they all roughly as follow each other and they have come down up from their downs of 1% and are now going to wrap themselves around 2% market again the point of this chart for me is when was the inflationary period 1990 this chart starts and this is been the inflationary period from 1990 till 2007 how much money did central banks prints up out of nowhere to keep their interest rates down so they could do this chart holistic are exporting trillions how much did banks loan across the Western world and in the eastern world to buy housing the most thing that arm that people do every now life is to take a mortgage out and this was to the populations of the world how much money was printed up in that period 1990 to 2007 that was the inflationary period just saying reviewing the financial times by Gillian Tet in US election-year voters and politicians face a wake-up call on the budget deficit and am sure you recognise the characters in the picture this is a review of Simon Johnson and quacks book arm not 13 bankers that’s the old one this new one is Washington burning last year the Washington Post newspaper and ABC television channel conducted a poll that showed that 95% of Americans wanted to cut their countries budget deficit by reducing government spending 95% of Americans wanted to cut their countries budget deficit by reducing government spending either alone or with tax-raising no surprise there you may think the issue of America’s debt has come to dominate the political debate this year as the fiscal problems have worsened our last paragraph has seconded her article link link however there was a catch 78% of Americans in this poll were opposed to any spending cuts in Medicare which is for the people the don’t know of US health insurance for the over 65 is an younger disabled people also 69% were opposed to cuts in Medicaid US means tested health-insurance and surprisingly 56 over half were against the idea of reducing military outlays indeed the only program that almost everyone was ready to cut was the foreign aid budget but that actually accounts for less than 1% of the federal outlays brackets although separate polls show that Americans believe that foreign aid gobbles up a quarter of the annual budget we can’t get a finger out and point that is the problem we know that banking in the back money system is a problem we know that governments are a problem but these millions of people are apathetic particular problem until we can get over peak ignorance we are going to stay in the deep to do is education of actually what’s going on what reality is what can be done is the only way hundred years ago people were talking about this down at the pub or the sports field or all just in their houses at their homes drinking tea in Coffey and beer they would discuss economic matters and political matters knots the stuff that they talk about now we basically deserve what we’re getting we need the combined brains of these millions of people to influence the small amount of people that are bankers and politicians who now hold the power they are not going to do the thinking on their little own sons haven’t in the past and then not going to now we are going to have to do it for them peak ignorance when were over it we might stand a chance God bless you my children till the next time Sunday on the seventh day thou shalt make videos by
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