Batten Down Your Hatches

"So why would this year’s ROA, which is expected to be close to that of pre-pandemic 2019, fall next year to a level close to 2020, when credit unions bore heavy impacts from the pandemic? CUNA Senior Economist Dawit Kebede said Tuesday that the main force behind the drop in ROA next year is the same force that played the main role in ROA falling in 2020 and rising in 2021: Loan loss provisions. That swing in loan loss provisions in turn reflects the freakishly high asset quality since the pandemic’s onset, a byproduct of government supports that provided much more support to household income than many economists expected." In part, all of the stimmies were a stealth bank bailout. The Fed knows how deeply in debt most great Americans are after years of encouraging them to borrow, borrow, borrow. Frankly, I love this - the Fed has finally managed to catch "the tit in the wringer". On the one hand, keep printing and distributing Fed Fun Bucks and inflation will continue the steady climb up and up and up. On the other hand, increase the overnight rate and remove the $120 billion in supports by tapering the Fed's purchases of very shitty investments and the stock market smoothies turn into crybabies and shit the bed. Congress, being the complete chickenshits that they are, will want to continue to borrow from whatever source they can find handy (China, Federal Reserve, Title Max, Cash Net USA, etc., etc.) so that they can keep their respective coalitions of money worshipping malcontent weirdos happy - Republican or Democrat makes no difference. Independents are the only true "American Party" - the rest of you are just big government bootlickers.