It appears that the neo-Keynesians Krugman and Wolf are right about at least one thing. Cutting government spending while the private sector is de-leveraging is a hard way to go. What happens is that as the feds cut back it reduces income to the private sector, which is itself in cutback mode. This then causes tax revenues to fall – which increases the deficit…
July 28th, 2010 | Bill Bonner | 0 comments | ContinuedAll Posts Tagged With: "de-leveraging"
Feds Think They Can Improve the Economy by Buying Things Nobody Wants
Reading more closely, we don’t see much reason for the Fed’s optimism. And apparently, neither does the Fed. It is leaving its monetary stimulus program in place for an “extended period.”
March 19th, 2010 | Bill Bonner | 0 comments | Continued
A Period of Credit Contraction, De-leveraging and Depression
No one knows for sure. Investors stumble around in the dark, bumping into data and knocking over lamps.
January 29th, 2010 | Bill Bonner | 1 comment | Continued
Thomas L. Friedman Trying to Reassure Americans
Back to Mr. Thomas L. Friedman. What we like about Mr. Friedman is that he is such an unworthy opponent. It is like playing darts with a blind man or a boxing match against a paraplegic.
November 25th, 2009 | Bill Bonner | 3 comments | Continued
Bankers Betting That the Money Given by Feds Will Be Worth Less Next Year
So far the bet has gone their way. Copper has doubled. Gold is up 20%. Stocks markets all over the world are up 60%. Foreign currencies, too, have beaten the dollar.
October 27th, 2009 | Bill Bonner | 2 comments | Continued
Ireland Going Through Same De-leveraging Process as the US
“House prices here in Ireland are still too high,” judged our man on the scene. Chris is our main man at the family office…
October 23rd, 2009 | Bill Bonner | 3 comments | Continued
An Abundance of New Money that Will Destroy the Dollar’s Buying Power
The importance is dependent on your perspective. Those people who are not borrowing money to spend are thus suffering the pangs of a lowering of their lifestyle, which depended on borrowing money to spend;
September 29th, 2009 | Mogambo Guru | 1 comment | Continued
It Would Take About 19 Years to Erase Debt From Bubble Period
Now, along comes the Comstock crowd with roughly the same guess – two decades. They figure that the savings rate will go up to 10% and that the effect of taking that money out of the consumer economy will be to put the United States into a long, soft slump…
August 12th, 2009 | Bill Bonner | 0 comments | Continued
