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Strategies & Market Trends : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?


To: Real Man who wrote (41452)8/30/2011 8:32:40 AM
From: ggersh  Read Replies (2) | Respond to of 71442
 
Wow....stop globalization, that's a start , it just might
keep the genie in the bottle, bwtfdik....



To: Real Man who wrote (41452)8/30/2011 10:58:51 AM
From: carranza2  Respond to of 71442
 
I don't know, the corporations with their huge piles of cash are probably not particularly keen on borrowing at the moment, though it makes sense b/c interest rates are so low, so maybe so, who knows.

With demand down, unemployment stuck at 15+%, and fiscal policy a laughable shambles, meaning that there is no consistency as the parties battle for votes and position, the public good be damned, the corporations and small employers are understandably leery about taking on new projects and investments. A non-virtuous cycle.

So, yeah, the Rogoff and Reinhart thesis seems to be playing out, it will take a very long time to get the bank reserves unstuck, credit going again, etc.

Just another credit bubble bursting.

I bet that if reserves deemed to be excessive are taxed, the story would be different, but we might have another bubble. I bet Benny will somehow find a way to get the excess reserves unstuck. That will be QE3, IMO.