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August 25th, 2010 · 1 Comment

What we’re reading, it ain’t a pretty picture…

As to the latter: money creation (through the QE program by the Fed) will only result in higher prices if the money created enters the economy (and even then there is a large buffer in excess capacity). This happens only if bank credit increases. Instead, it’s falling, as credit demand is very weak.

Tags: Interesting!

1 response so far ↓

  • 1 kencooksam // Aug 25, 2010 at 11:11 pm

    The world stopped with Europe.Including the US.The data coming out now is from the Europe scare period.
    US companies are doing well.Lots of cash and good earnings.
    I think when later data emerges the economy will appear much better.
    Example see Toll Bros earnings today.High end homes are selling.First profit in 3 years this quarter.