crowded out of credit markets

I'd like to rant ......

I read the most recent release from the federal reserve. (June 7 statistical release on Flow of Funds)

According to the Fed -

federal borrowing grew by 11 percent in 2011.
(in fact - federal borrowing grew by double-digit rates every year since 2008).

A full 80% of our country's credit market activity is federal borrowing (my calculation) ----
(federal debt represents only a quarter of all national debt - but that's growing)

The US government will run a 1.5 Trillion dollar deficit --- to support a bureaucracy (household) of 4.4 million employees (OPM)

Borrowing = about $341,000 per employee.

Were I to borrow at a rate comparable to Washington, DC ---- my 5 person household would borrow 1.7 million dollars in a single year .

Now - I think I might be able to talk the loan officer into a $5,000 personal loan

---

but I doubt we could get anywhere near $1.7 million. (I have a small business I'd like to start - and a rental home mortgage I'd like to re-structure onto a shorter payoff --- neither is possible, right now, according to the bankers (my credit rating is virtually perfect).

Obviously, the people who underwrite federal borrowing utilize different standards than the loan officer at my bank (that's discriminatory lending!).

- I resent that the government (regardless of who's president) is not held to the same fiscal soundness standards that I'm held to. (they couldn't - which is why they aren't)

- I resent that I've been effectively crowded out of the credit markets by federal borrowing.

By comparison - household borrowing shrank by 1.5 percent. (household borrowing shrank every year since 2008).

Yes - I realize that borrowing is the product of decades of poor fiscal policy (as a Republican, I'll even admit that Bill Clinton enjoyed the most fiscally sound era of the past half century).

bailey bud wrote: I'd like to rant ......

I read the most recent release from the federal reserve. (June 7 statistical release on Flow of Funds)

According to the Fed -

federal borrowing grew by 11 percent in 2011.
(in fact - federal borrowing grew by double-digit rates every year since 2008).

A full 80% of our country's credit market activity is federal borrowing (my calculation) ----
(federal debt represents only a quarter of all national debt - but that's growing)

The US government will run a 1.5 Trillion dollar deficit --- to support a bureaucracy (household) of 4.4 million employees (OPM)

Borrowing = about $341,000 per employee.

Were I to borrow at a rate comparable to Washington, DC ---- my 5 person household would borrow 1.7 million dollars in a single year .

Now - I think I might be able to talk the loan officer into a $5,000 personal loan

---

but I doubt we could get anywhere near $1.7 million. (I have a small business I'd like to start - and a rental home mortgage I'd like to re-structure onto a shorter payoff --- neither is possible, right now, according to the bankers (my credit rating is virtually perfect).

Obviously, the people who underwrite federal borrowing utilize different standards than the loan officer at my bank (that's discriminatory lending!).

- I resent that the government (regardless of who's president) is not held to the same fiscal soundness standards that I'm held to. (they couldn't - which is why they aren't)

- I resent that I've been effectively crowded out of the credit markets by federal borrowing.

By comparison - household borrowing shrank by 1.5 percent. (household borrowing shrank every year since 2008).

Yes - I realize that borrowing is the product of decades of poor fiscal policy (as a Republican, I'll even admit that Bill Clinton enjoyed the most fiscally sound era of the past half century).

The answer to all your question is... get ready for it... "Bush Did It." :can't hear

I guess we'll find out how many of our fellow Americans agree with you BB, too bad we have to wait until the late hours of November 6th or the wee hours of November 7th to find out.

I wonder if these folks are any smarter three and a half years later?

[youtube:1c81fnp3][/youtube:1c81fnp3]

Yep yep yep. Everyone complains about wall street bankers, and the Federal reserve is the biggest most powerful bank and run by the gubment. How does everyone like the hidden tax of 0% interest rates?

bailey bud wrote: - I resent that the government (regardless of who's president) is not held to the same fiscal soundness standards that I'm held to.

Give it time, or be careful what you wish for. 10 year Treasuries are at about 1.5% a historic low. No one in their right mind should be buying those bonds for 10 years.

Greece and Spain pay more like 6-7% and going up.