Comments on: Conversations with Abdul Aziz 1 http://thememorybank.co.uk/2008/09/30/conversations-with-abdul-aziz-1/ A New Commonwealth — Ver 5.0 Sat, 10 Dec 2011 18:56:16 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: edphil http://thememorybank.co.uk/2008/09/30/conversations-with-abdul-aziz-1/comment-page-1/#comment-86 edphil Wed, 01 Oct 2008 20:33:46 +0000 http://www.thememorybank.co.uk/?p=445#comment-86 Perhaps I sound too blithe and even cheerful. A drop in housing price is good for buyers and problematic for mortgages. However, the crisis in financialization that has ensued is due to many factors, not the least of which is the "chasing of the global surplus value pot" and very thin capitalization along with concomitant leverage. Add to that the "correlation" created ironically enough by the spreading of risk and you have quite a phenomenon. Not one that should have hypnotized congress into authorizing the purchase of occult paper in the hopes of locking in housing and bank credit inflation. I've found Donald Mackenzie's work on the credit markets to be a very interesting mix of economese and sociology. His last piece on the LIBOR was fascinating. The LIBOR is now less relevant than anecdote as one hears that interbank lending is on hold. Perhaps I sound too blithe and even cheerful. A drop in housing price is good for buyers and problematic for mortgages. However, the crisis in financialization that has ensued is due to many factors, not the least of which is the “chasing of the global surplus value pot” and very thin capitalization along with concomitant leverage. Add to that the “correlation” created ironically enough by the spreading of risk and you have quite a phenomenon.

Not one that should have hypnotized congress into authorizing the purchase of occult paper in the hopes of locking in housing and bank credit inflation.

I’ve found Donald Mackenzie’s work on the credit markets to be a very interesting mix of economese and sociology. His last piece on the LIBOR was fascinating.

The LIBOR is now less relevant than anecdote as one hears that interbank lending is on hold.

]]> By: edphil http://thememorybank.co.uk/2008/09/30/conversations-with-abdul-aziz-1/comment-page-1/#comment-85 edphil Wed, 01 Oct 2008 16:12:15 +0000 http://www.thememorybank.co.uk/?p=445#comment-85 Thanks for this Keith and Abdul. It would be nice to keep up a kind of asynchronous dialogue. I concur with Abdul and this points out how a streamlined industry such as Oil can not only handle deflationary pressure but is better off working with it. I would not underestimate the deflationary pressure of the tremendous production that has been unleashed worldwide, i.e. Asia. The deflationary pressure on housing in the U.S. is also an opportunity, and not just the bane to the inefficient and thinly capitalized banking entities. In detroit as we see a house is now the price of a car, and that is not a bad thing. Bank credit deflation could be seen as an opportunity. Thanks for this Keith and Abdul.

It would be nice to keep up a kind of asynchronous dialogue.

I concur with Abdul and this points out how a streamlined industry such as Oil can not only handle deflationary pressure but is better off working with it.

I would not underestimate the deflationary pressure of the tremendous production that has been unleashed worldwide, i.e. Asia.

The deflationary pressure on housing in the U.S. is also an opportunity, and not just the bane to the inefficient and thinly capitalized banking entities.
In detroit as we see a house is now the price of a car, and that is not a bad thing.

Bank credit deflation could be seen as an opportunity.

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