or a just broken banking system and an economy that is in dire need of structural readjustment?
There are reasons that the economy don't have sustainable growth, and there are reasons money is stuck in the bank. Until we look at the fundamentals of the economy, such as current house and other asset prices versus prices for those assets if allowed to clear in an unfettered market, we cannot get back to sustainable growth.
Money will be stuck in the bank, and we will be in a "liquidity trap" until prices are more in line with what prices should be and until bad debt is allowed to be liquidated. We've had horrible inflation.
No comments:
Post a Comment