Mish's Global Economic Trend Analysis Message Board

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Strategies & Market Trends : Mish's Global Economic Trend Analysis

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To: mishedlo who wrote (65119)	4/13/2007 5:21:54 PM
From: MulhollandDrive	Read Replies (1) of 116555

wrote recently about a concept called “zero hour” that was initially unveiled by Barry Bannister (who worked for Legg Mason at the time). Essentially, zero hour is defined loosely as the moment at which credit growth no longer has an impact on the real economy. While the US not yet there, I wonder aloud if it is not heading on a course towards zero hour, or as some call it, “the day of reckoning.” I will say this. I do not know when and even if this is to occur. Frankly, for our children’s sake, I hope that it does not. But to blindly ignore the mere possibility of this potential outcome is to be imprudent, particularly with other people’s hard earned capital. If the US does not, as a nation, get its financial house in order (in a short time I may add), then the question becomes not if the US visits zero hour, but when it reaches zero hour. mish, can you elaborate a bit more on what the author means by 'zero hour'....i think i know, but i'm not sure and would like to know precisely what he means when he says credit growth will no longer have an impact on the real economy...

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