Credit Markets Quotes

The banks have discontinued themselves. We are now without any medium … necessity, as well as patriotism and confidence will make us all eager to receive Treasury notes if founded on specific taxes. Congress may now borrow of the public, and without interest, all the money they may want … by merely issuing their own promissory notes ….

On private transactions, I'll just go very quickly now, a major difference between the United States and Euroland is that in Europe banks are much more important in financial transactions than in the United States.

Different countries have different kinds of financial structures.

The financial sector is vital to the economy. A well-functioning financial sector promotes job creation, innovation, and inclusive economic growth.

The banks, because of mismanagement, because of huge risk taking, are now in very vulnerable positions. We can expect that we're gonna have to do more to shore up the financial system. We also are gonna have to make sure that we set up financial regulations so that not only does this never happen again, but you start having some sort of - trust in how the credit markets work again.

What is the system? It revolves around the banks, the system is built on the power of the banks, so it can be destroyed through the banks.

In a financial crisis, only the Fed, as the lender of last resort, might stand between our economy and financial catastrophe. We must leave the Fed with the flexibility to provide liquidity in order to stop a financial panic.

One component of the leading economic indicators is the yield curve. Bond investors keep a close eye on this, as it illustrates the spread or difference between long-term interest rates and short-term ones.

To the extent that bank panics interfere with normal flows of credit, they may affect the performance of the real economy.

If a division becomes insolvent, the credit markets' reaction to that is immediate - regardless of what period of time you think you have to remedy.

When does money run out of time? The countdown begins when investable assets pose too much risk for too little return; when lenders desert credit markets for other alternatives such as cash or real assets.

The failure of credit markets is one of the major reasons for underdevelopment.

Every central banker in the world pays attention to credit growth, but not in the U.S.

Most Americans have no real understanding of the operation of the international money lenders. The accounts of the Federal Reserve System have never been audited. It operates outside the control of Congress and manipulates the credit of the United States

The banks have accounts with the Fed, much the same way that you have an account in a commercial bank.

I think that I was the first MP to call for the nationalisation of Northern Rock, although that is hardly surprising because I have been calling for the nationalisation of the financial sector for 30 years or more.

In normal times, investors should pay more attention to the credit markets because it's the energy by which everything is driven. It's the oil in the engine.

Wars have been fought with borrowed money ever since Rome instituted the practice of forcing its richer citizens to loan the state money to help fund the conflict with Carthage in the third century BC.

The theory of interest was wrapped in utter obscurity, until Hume and Smith dispelled the vapor.

Well, we're just now seeing the reductions in mortgage rates. The mortgage rates are based on the ten-year rate and the Fed controls the overnight or the shorter rates.

Like many other banks and finance companies, Green Tree used a process called securitization to resell its home loans to outside investors. Green Tree grouped thousands of these small loans into a pool worth hundreds of millions of dollars.

Before 1980, it was basically illegal for U.S. banks to invent new products.

Cheap money feels like the most natural thing in the world - if you don't think about why it's so cheap.

I mean the whole economy just comes to a grinding halt. Competence in markets and in institutions, it's a lot like oxygen. When you have it, you don't even think about it. Indispensable. You can go years without thinking about it. When it's gone for five minutes, it's the only thing you think about. And the oxygen has been sucked out of the credit markets.

A well-functioning transmission should at some point go from the overnight right up to 40 years, and that is the ultimate objective in having monetary transmission that affects the whole gamut of borrowing tenure.