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

To: Hawkmoon who wrote (109183)	3/1/2010 3:29:04 PM
From: skinowski	1 Recommendation Read Replies (2) \| Respond to of 116555

velocity of financial transactions If money is not moving and just sitting there, then clearly the economy isn't bubbling. From what I see, banks are reluctant to lend to customers, the latter are reluctant to borrow - so, the banks use their very cheap liquidity to buy bonds and collect interest. To a large degree the banking industry is turning into a carry trade. I really think that economies and markets were better off in the years past, before the economists became so "smart", and governments so proactive. Usually, there would be a period of hardship, maybe a deflationary episode, a panic -- and then bottom fishers would step in, and soon the sun would come up and shine on the new owners, and at some point there would be no way to go but up. Ever since they came up with their sophisticated economic models everything is a mess and no one knows their behind from their elbow.... I'll probably get into trouble from any and all resident economists on this thread.... :)