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


To: Hawkmoon who wrote (96422)4/13/2009 3:22:11 AM
From: John Metcalf  Respond to of 116555
 
"If people are saving, then asset prices are failing, debt is defaulting (monetary destruction) and then we find ourselves in the depths of a liquidity trap."

This is how the tyranny of aggregate econ posts creates absurdity. Why/how would escalating net savers be defaulting on their debts? As to the prices of assets, why would increased savings lower them? Into which falling assets are increasing savings being placed?

Huh?