Bob Chapman The International Forecaster November 29, 2009 The following information may be the most important we have ever published. One of our Intel sources, highly placed in banking circles, tells us that on 1/1/10 all banks that have received TARP funds have been informed by the Federal Reserve that they must further restrict any commercial lending. Loans have to be 75% collateralized, 50% of which has to be in cash, which is a compensating balance.
<i>Restrict</i> loans? When there's already pressure from the FDIC and other sources to lend rather than dumping funds into the treasuries/commodities carry trade? On top of that, the Senate Banking Committee is already considering legislation to strip the Fed of its regulatory power. I doubt this article's claim.
I looked this guy up, and I don't see any evidence of credibility here. This would have made its way to mainstream by now, and the lack of news on this subject would indicate it is false.
Whatever, that's not the case. The fact that it hasn't been reported by any major news agency makes it false. I could go out and report from my person in the treasury that they will be providing rebates to any company buying collateralized mortgage backed securities, but if it never made it to a credible news agency, I think you'd know it was a lie. The same case right here. There is no credibility in this statement. Everyone has an opinion, and that is all I believe the statement is, but it is stated as fact, which isn't good.
My issue is with the source...this is the same guy who said that we could have a currency run a few months ago...and that US embassies abroad had been told to stock up on foreign currency. Too many calls of "Wolf!" for me! -gastropod