What The Hell? (Outstanding Credit)

[MarketNeutral]

WHAT?

http://market-ticker.denninger.net/uploads/2010/Apr/consumer-loans.serendipityThumb.png

An $84.2 billion increase in one month, or annualized, a significantly more than 100% run rate?

Something's not right here folks. I can't find the rest of the one-week ramp yet, as the data is not current enough for me to do so, but that's an insane increase.

C&I loans picked up a bit (614 .vs. 591. 8) which is a significant move as well, but then again it also dropped a lot between 3-17 and 3-24 (605 to 591. 8), so in context it's not nearly as material.

Where did the more than $400 billion go that was "borrowed"?
http://market-ticker.denninger.net/archives/2187-What-The-Hell-Outstanding-Credit.html

[iOWNme]

I have a $5k credit card that i use maybe once every 3 months for the past 8 years. When i use it it is usually for a couple hundred dollars at most, then paid of within a month or 2.

I got a letter in the mail from them stating that since i dont use it very much, they are lowering my credit line to $2k!


As if they dont have enough ' reserves ' to cover my 'loan'. THERE IS NO MONEY! But i can access private credit by merely signing my name and POOF! 'Money' is created!

This is a shell game.......

[MarketNeutral]

The smiling faces are suppose to be "8"s.

[Horn]

Looks like someone broke a pencil point there...

[Horn]

The smiling faces are suppose to be "8"s.




:) ;) :D ;D

I can only make it till 4

Seriously though, what can joo guys make out of this? ???

[Ponce]

Mr. Juris? I say that it would depend on your credit rating........mine is from 832-836 and but for the credit card from BOFA, that I cancelled, all my cards are still the same.........almost never used them but to order something on line.

After 20 years plus with BOFA they wanted to charged me $29.00 a year for the card.........could it be that it was because I never pay them one Cuban centavo in interest?

[sunshine05]

That has to be a mistake, right?

[iOWNme]

Mr. Juris? I say that it would depend on your credit rating........mine is from 832-836 and but for the credit card from BOFA, that I cancelled, all my cards are still the same.........almost never used them but to order something on line.

After 20 years plus with BOFA they wanted to charged me $29.00 a year for the card.........could it be that it was because I never pay them one Cuban centavo in interest?


Good point. Mine is around 740 or so....

The computer spit your name out as someone who does NOT fall for usury. You are a bad sheep.


:)

[Carl]

UPDATE:

Did The Fed Just (Surreptitiously) Bail Out Europe? http://market-ticker.denninger.net/archives/2186-Did-The-Fed-Just-Surreptitiously-Bail-Out-Europe.html

No, not just Greece - all of Europe. Without Congressional authorization or notice, of course.

Hattip to a nice emailer....

http://market-ticker.denninger.net/uploads/2010/Apr/TOTLL_Max_630_378.png

Or if you prefer it on a one-year time scale...

http://market-ticker.denninger.net/uploads/2010/Apr/totll-1-year.png

That nice little vertical line is a gain of $421.8 billion dollars of outstanding loans and leases in one week's time.

WHERE THE HELL DID THAT MONEY GO AND WHAT COLLATERAL WAS TAKEN AGAINST A FOUR HUNDRED BILLION DOLLAR INCREASE IN OUTSTANDING LOANS?

You won't find anything like that in the records - because it's never happened before. That's beyond unprecedented, it's ridiculous, and assuming it's also accurate, someone has some 'splaining to do on what clearly appears to be some sort of back-door game being run.

Update: It has been suggested that this may be related to the FASB changes and securitized loans coming back on the balance sheet. If so, where's the alleged memorandum items on the other side and the footnote on FRED? The latter is missing, but the necessary data on FRED to confirm that is not yet updated.

Nonetheless, if this is the case, it's still bad (just not catastrophic) as this will directly hit capital ratios. Or, put another way, where's the additional capital that "should" be there to support what is now on balance sheet and was previously off (never mind that it was crooked as hell to have it off in the first place!)

[Neuro]

If this is, as proposed by Carl, just a matter of banks bringing back loans that were taken off the books (and this may only be the beginning of this process), then we never really had much of deflating bank lending, only cooking of books... The increase in savings rate was just an illusion by taking loans from the banks books. This represents about 6-7% of the entire credit book of the banks, what could the total be 20 or 30% or even more?

[DMac]

Related to this?

IMF Prepares For Global Cataclysm, Expands Backup Rescue Facility By Half A Trillion For "Contribution To Global Financial Stability" (http://www.zerohedge.com/article/imf-prepares-global-cataclysm-expands-backup-rescue-facility-half-trillion-contribution-glob)

snip


And all the pundits thought that the IMF would be on the hook for just €10 billion... The IMF has just announced (http://www.imf.org/external/np/sec/pr/2010/pr10145.htm) that it is expanding its New Arrangement to Borrow (NAB) (http://www.imf.org/external/np/exr/facts/gabnab.htm) multilateral facility from its existing $50 billion by a whopping $500 billion (SDR333.5 billion), to $550 billion. The current lending participant group of 26 entities will be increased by 13 new members all of whom will contribute token amount of capital to the NAB. The one country most on the hook in the new and revised NAB - the United States of America, will provide over $105 billion in total commitments, or 20% of the total facility. The US is currently on the hook for just $10 billion, meaning its participation in global bail outs just increased by $95 billion. And the bulk of these bailouts will certainly be located across the Atlantic. What is most troublesome is the massive expansion of the NAR. If the IMF believes that over half a trillion in short-term funding is needed imminently, is all hell about to break loose...