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Daily Briefing: New Highs in Gold, COTs, and the Fiscal Cliff

Summary:
Tony Bennett9 hrs"I was on RealVision today with Ash Bennington discussing Gold, the Fed, Covid, consumer spending and a looming fiscal cliff." ... All nice ... and trends will likely continue ... until Credit tightening arrives in force. On the move NOW. From FR survey out the other day: Over the second quarter, major net shares of banks reported having tightened standards for C&I loans to both large and middle-market firms and to small firms.3 At the same time, major net shares of banks increased the use of interest rate floors, collateralization requirements, loan covenants, premiums charged on riskier loans, and loan spreads over the bank’s cost of funds, and significant net shares of banks tightened all other lending terms across firms of all sizes. Major net shares of domestic banks

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Tony Bennett

"I was on RealVision today with Ash Bennington discussing Gold, the Fed, Covid, consumer spending and a looming fiscal cliff."

...

All nice ... and trends will likely continue ... until

Credit tightening arrives in force.

On the move NOW.

From FR survey out the other day:

Over the second quarter, major net shares of banks reported having tightened standards for C&I loans to both large and middle-market firms and to small firms.3 At the same time, major net shares of banks increased the use of interest rate floors, collateralization requirements, loan covenants, premiums charged on riskier loans, and loan spreads over the bank’s cost of funds, and significant net shares of banks tightened all other lending terms across firms of all sizes.

Major net shares of domestic banks tightened standards on all three CRE loan categories over the second quarter.

Over the second quarter, major net shares of banks tightened standards for all RRE loan categories except for subprime residential mortgage loans, for which a significant net fraction of banks reportedly tightened lending standards.

Over the second quarter, major net shares of banks tightened lending standards on all categories of consumer loans. Major net fractions of banks also tightened important terms on credit card loans, including credit limits and minimum credit scores required.

Mike Shedlock
Mike Shedlock (Mish) is a registered investment advisor representative for SitkaPacific Capital Management (http://www.sitkapacific.com/). Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction.

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