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Strategies & Market Trends : The Residential Real Estate Crash Index

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To: Les H who wrote (164824)11/16/2008 5:10:42 PM
From: ChanceIs of 306849
 
>>>The massive surge in bank reserves in the past fortnight suggests the helicopters have now been scrambled and the strategy is being put to the test.<<<

Interesting.

Several scholars have noted that indeed the FED is printing the $$$$, but.....the money supply isn't growing. Why??? Because the banks' multipliers are shrinking. Why??? Deleveraging.

A noted expert said that 'when the FED guarantees inflation, then the banks will start lending again.'

From my little retail desk I can't discern where we are WRT money supply growth.

I look at the Oct 10 bottom holding on Thursday and think the worst has come and gone.

Then I look at the Baltic Dry Index, housing, earnings, unemployment, etc and groan.

J6P is still in his cave wondering what hit him. He won't be coming out until way past Ground Hog's Day.
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