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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: mishedlo who wrote (18331)	12/10/2004 1:02:13 PM
From: ild	Respond to of 116555

Bring it on, right now! (I still have some Dec poots) -g/ng-

To: mishedlo who wrote (18331)	12/10/2004 1:04:43 PM
From: philv	Respond to of 116555

Mish, your point No. 6: "The fed pumps money into the system (or attempts to), but there are no borrowers that banks want to lend to. Across the board, lending collapses." This is what actually happened in Japan. Japanese solution: The government will spend for the people! They embarked upon an enormous public expenditure program (roads, bridges, airports etc.) to goose the economy. Result: Highest per capita debt, much higher than the U.S. But their own population is socking away their savings and have one of the highest savings rates. No doubt, if there are no borrowers, this is the next phase for the U.S. In other words, even greater debt. Unfortunately, the borrowing will have to come from abroad as the US savings is miniscule.