dreamdancer 0 #1 May 27, 2010 another great depression you say, surely not... QuoteThe M3 figures - which include broad range of bank accounts and are tracked by British and European monetarists for warning signals about the direction of the US economy a year or so in advance - began shrinking last summer. The pace has since quickened. The stock of money fell from $14.2 trillion to $13.9 trillion in the three months to April, amounting to an annual rate of contraction of 9.6pc. The assets of insitutional money market funds fell at a 37pc rate, the sharpest drop ever. It’s frightening," said Professor Tim Congdon from International Monetary Research. "The plunge in M3 has no precedent since the Great Depression. The dominant reason for this is that regulators across the world are pressing banks to raise capital asset ratios and to shrink their risk assets. This is why the US is not recovering properly," he said. The US authorities have an entirely different explanation for the failure of stimulus measures to gain full traction. They are opting instead for yet further doses of Keynesian spending, despite warnings from the IMF that the gross public debt of the US will reach 97pc of GDP next year and 110pc by 2015. http://www.telegraph.co.uk/finance/economics/7769126/US-money-supply-plunges-at-1930s-pace-as-Obama-eyes-fresh-stimulus.htmlstay away from moving propellers - they bite blue skies from thai sky adventures good solid response-provoking keyboarding Quote Share this post Link to post Share on other sites
Lucky... 0 #2 May 27, 2010 Quoteanother great depression you say, surely not... QuoteThe M3 figures - which include broad range of bank accounts and are tracked by British and European monetarists for warning signals about the direction of the US economy a year or so in advance - began shrinking last summer. The pace has since quickened. The stock of money fell from $14.2 trillion to $13.9 trillion in the three months to April, amounting to an annual rate of contraction of 9.6pc. The assets of insitutional money market funds fell at a 37pc rate, the sharpest drop ever. It’s frightening," said Professor Tim Congdon from International Monetary Research. "The plunge in M3 has no precedent since the Great Depression. The dominant reason for this is that regulators across the world are pressing banks to raise capital asset ratios and to shrink their risk assets. This is why the US is not recovering properly," he said. The US authorities have an entirely different explanation for the failure of stimulus measures to gain full traction. They are opting instead for yet further doses of Keynesian spending, despite warnings from the IMF that the gross public debt of the US will reach 97pc of GDP next year and 110pc by 2015. http://www.telegraph.co.uk/finance/economics/7769126/US-money-supply-plunges-at-1930s-pace-as-Obama-eyes-fresh-stimulus.html Yea, the idiot Americans who feel this was a slight dip aren't willing to face that this was the exact entry into the GD as it was in 1929 with a few extras: - Banks crashing - unemployment sppoling; 3.4% in teh year preceeding Obama's term. - GDP tanking for several consecutive Q's. And hell, we had hyperinflation leading up to it, I don't think they had that then. And other than people losing their houses, the mortgage market didn't cause the crash, I'm sure after wonderful Hoover did nothing it then became an issue. So in many ways, this was more dynamically a mess than it was then. Quote Share this post Link to post Share on other sites
wmw999 2,589 #3 May 27, 2010 Quote And hell, we had hyperinflation leading up to it, I don't think they had that then Huh? When did the US have hyperinflation? And if things were spiraling, do you think it was a good idea to try to stave it off with bailouts, or would it have been better to just let things fail? What do you think the outcome would have been? Personally, I don't think it's a great situation. If we let things fail, we KNOW we're in for some really bad times, but maybe, just maybe, if we rescue, we'll get back on an even keel. I have a feeling that was the thinking. Either way, this economy is a good indicator of what happens when everyone (individuals, companies, governments) narrowly define a bottom line and manage to it. The focus on metrics helps one to manage to them, but sometimes there are other factors that matter besides the most important. Kind of how like food isn't just the sum of calories and a couple of vitamins -- otherwise we'd be able to survive off sugar and vitamin pills Wendy P.There is nothing more dangerous than breaking a basic safety rule and getting away with it. It removes fear of the consequences and builds false confidence. (tbrown) Quote Share this post Link to post Share on other sites
timmyfitz 0 #4 May 27, 2010 Quote Quote And hell, we had hyperinflation leading up to it, I don't think they had that then Huh? When did the US have hyperinflation? In Lucky's world, things are quite different than reality. Quote Share this post Link to post Share on other sites
