This podcast is produced by KPP Financial, Steve Peasley President,

KPP Financial, Independent Thinking, shared success, and now today's podcast. Good afternoon fellow investors and welcome to Invest Talk. This is our Thursday

October 1st, 2020 edition and yes that October 1st means that we have started the fourth

quarter we are three quarters of the way through the year and we know that earning season will be soon around the

corner as well as the election and more importantly economic figures for the quarter bank earnings because I think that's going to be extremely

important and an environment where there's a lot of moving parts, both stimulus that is plugging a lot of holes,

as well as banks that are finding defaults across their loan book.

It's not just housing folks. defaults across their loan book.

It's not just housing focused, like in 2008.

It's broad-based.

But you also have broad-based huge stimulus that was passed in March and proceeded to, like I said,

plug a lot of balance sheet holes. The Fed can give liquidity in the market. They can inject

liquidity, but liquidity doesn't solve solvency but governments can do that right you hand somebody

enough money who's in financial straits whether that's a person whether that's a

corporation their solvency issue can go away.

And so how much of the stimulus was,

went to plugging that balance sheet deficit. How much was it used for spending

in the economy which will produce earnings right blogging a balance sheet does not produce

earnings and then on top of that we're going to have the loan officer survey here I think it's tomorrow it's coming up soon and

that's very important to see what our loan officers doing because a lot of

people focus on the Fed so they have a lot of people focus on the Fed,

roughly so, they have a lot of power, but they do not.

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