Lee Adler

Enabled By ZIRP and QE, Bankers Continue Looting Instead of Building Capital

By Lee Adler, The Wall Street Examiner: One of the purposes of the Fed’s Zero Interest Rate Policy (ZIRP) was ostensibly to allow banks to rebuild their capital through suppressed funding costs and increased profits. Theoretically that would add to their capital. But in this chart, we see that the growth rate of bank capital has fallen to zero.

The New Housing Market “Recovery” – Fact V. Fiction

By Lee Adler, The Wall Street Examiner: There’s been a lot of talk over the past year about the housing “recovery.” But the fact of the matter is that in terms of new single-family homes, there’s no genuine recovery, but there’s certainly a bubble in prices.

The Big Four Central Banks Muddy The Same Sea Of Liquidity, And Then There’s China

Contributed by Lee Adler, of The Wall Street Examiner. The Fed, ECB, BoJ, and BoE all deal with the same banks. Of the Fed’s 21 Primary Dealers, its sole counterparties, only seven are US domiciled. Three are Canadian, eight are European, including three British banks, and three are Japanese. All of them are major players in Europe and Japan.

The Fed Is Blowing A Dangerous Bank Deposit Bubble

Contributed by Lee Adler, The Wall Street Examiner. The Fed is growing deposits far faster than banks can deploy them, or than the economy can use them. It is growing  them far faster than anybody wants or needs. And so, there are “hundreds of billions of dollars of potential fuel unused.” Therein lies  the potential for big problems.