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Strategies & Market Trends : Booms, Busts, and Recoveries

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To: Maurice Winn who wrote (13746)1/21/2002 9:28:56 AM
From: Mike M2  Read Replies (2) of 74559
 
M, the central banks can increase the reserves of the banking system but that does not ensure that those reserves will become loans which increase the money supply. One must have borrowers who are willing & able to take loans from lenders who are willing & able to make them. This also ignores the reality that since 1998 the greater part of credit has come from outside the banking system where the Fed does not control it. We must also remember that debt levels are a record levels and credit quality is deteriorating - problems which more credit cannot solve. mqike
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