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

To: daveinmarinca who wrote (67789)	8/19/2007 1:12:59 PM
From: ballsschweaty	Read Replies (3) \| Respond to of 116555

<With the destruction of credit, M3 growth has been flat for the last 3/4+months.> Do you mean the rate of growth has been flat (i.e 12% year on year) or zero growth yoy? I thought m3 is still growing fairly rapidly year on year. <Is your thought that Ben can't "print" fast enough?> Ben can theoretically print all that he wants. Loaning more money to banks and Wall Street isn't going to cut it. The ground level economy depends on millions of people increasing their debts at an ever higher rate to be able to service past debt plus keep spending robust. This is impossible. For Bernanke to avoid a recessionary credit contraction at this point, he will literally have to drop money from helicopters onto the front lawns of millions of people. Loaning more money to his banking and Wall Street cronies won't cut it.