an amazing lack of concern by investors, as JapLiquidity Trap
envelops the US Economy
we are seeing interest rates drop
TENyr TNote yield now under 3.5%
investors are banging the table for another Fed rate cut to under 1.0%
car loans are offered at 0% down/ 0% interest
furniture sales are available for no payments for 6 months
WE HAVE ENTERED THE JAP LIQUIDITY TRAP, WE ARE HERE !!!
AND NOBODY SEEMS TO BE AWARE
just like a frog in a boiling kettle
if the temperature rises in a slow boil, no awareness
beware: there is no exit from a Liquidity Trap
and why is that???
because all political and business pressures will be exerted to prevent rates from rising
because if rates rise, then real estate tanks, corporate earnings tank (from swaps and debt costs), stock market tanks, consumer spending tanks, federal govt debt service eats up larger slice of budget, businesses fail, people declare bankruptcy, jobs are lost, and the game ends
this is precisely the end of the Keynesian Monetarist dead-end alley way
A POINT OF NO EXIT, A POINT OF NO RETURN
nobody gets it
but then again, nobody was taught ECONOMICS
even economists
/ jim |
