Thursday, December 21, 2017

The Fed Manipulated GDP Boom

Today's headlines:

The Fed Manipulated GDP Boom

What the Leading Economic Indicators are Telling Us

Has Bitcoin Exhaustion Been Hit?

It Begins: Fannie Mae

Subscriber Question
Q. I had a banking insider recently adamantly tell me that banks are vigilant to match duration of their borrowing and lending and its "not at all accurate to say banks borrow short and lend long."  He stated banks employ people and develop computer programs specifically to ensure they are not mismatched on duration. The individual was the CFO of a regional bank for 15 years before it was bought by a larger bank approximately 10 years ago.  Do you have comments on this as it conflicts with your comments that "The reason the yield curve is such a good predictor of recessions is that banks borrow short-term and loan out long-term."


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