Trump’s Amazing Historical Ignorance, “Priming the Pump” Edition

From the transcript of a recent interview with The Economist:

But beyond that it’s OK if the tax plan increases the deficit?
It is OK, because it won’t increase it for long. You may have two years where you’ll…you understand the expression “prime the pump”?
Yes.
We have to prime the pump.
It’s very Keynesian.
We’re the highest-taxed nation in the world. Have you heard that expression before, for this particular type of an event?
Priming the pump?
Yeah, have you heard it?
Yes.
Have you heard that expression used before? Because I haven’t heard it. I mean, I just…I came up with it a couple of days ago and I thought it was good. It’s what you have to do.

via Q&A: Transcript: Interview with Donald Trump | The Economist

After Massive Loan Growth Under Obama, Credit Stalls Under Trump

Coincidence? Via Wolf Street:

US-commercial-industrial-loans-2012_2017-05-10Over the past five decades, each time commercial and industrial loan balances at US banks shrank or stalled as companies cut back or as banks tightened their lending standards in reaction to the economy they found themselves in, a recession was either already in progress or would start soon. There has been no exception since the 1960s. Last time this happened was during the Financial Crisis.

via Oops, this Wasn’t Supposed to Occur in a Rosy Credit Scenario | Wolf Street

Trump Treasury Secretary Steve Mnuchin Renounces Commitment to Glass-Steagall While Saying He Isn’t | naked capitalism

I don’t understand this at all. Glass Steagall would help Goldman by disrupting the business models of JP, Citi, etc. Hmmmm. I suppose Jamie Dimon has been burning up the phone line?

Via Yves Smith at Naked Capitalism:

I’ve seen some pretty brazen performances over the years, but this one is a standout in a bad way. Steve Mnuchin tells Elizabeth Warren, with a straight face, that Trump’s campaign pledge to implement Glass Steagall has nada to do with breaking up banks. He also makes the utterly false claim that separating commercial and investment banks would hurt small bank lending. The integration between small business activities and investment banking is nada, save at most for brokerage and investmetn management targeting the more successful small business owners. That has bupkis to do with lending.

via Trump Treasury Secretary Steve Mnuchin Renounces Commitment to Glass-Steagall While Saying He Isn’t | naked capitalism

Can Goldman’s Rapacity and Trump’s Stupidity Together Actually Save Banking?

Trump’s two main economic advisors are telling him to do something great – resurrect Glass Steagall! He is too stupid to realize these two – Goldman pod people Cohn and Mnuchin – are doing this so all their gazillions in deferred investments in the firm grow even more grotesque. But so what? For once, having a malleable moron in the White House could be a good thing!

A new Glass-Steagall would split (taxpayer-insured, whether de jure or de facto) commercial banking from the casino of investment banking and go a long way toward unloading the Too Big To Fail gun that tumescent, serially incompetent commercial-investment bank hybrids like Citi hold to the heads of policymakers.

Effect on  (pure-ish play investment bank) Goldman? Zilch. Unless you count how happy they’ll be to see their big competitors – Citi, JPMC, BofA et al – kneecapped. You can bet Cohn and Mnuchin are smiling at The Donald’ s cluelessness. For once, we can, too.

Via Bloomberg: Trump Says He’s Considering Moves to Break Up Wall Street Banks https://bloom.bg/2p1Eufs