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Category Archive: Liquidity Trap

  1. And Now For Some Really Bad Economic News…

     The U.S. econ­omy has a long way to go before the eco­nomic recov­ery will be either sus­tain­able or robust.  Mon­e­tary indi­ca­tors don’t look good and are once again get­ting worse.  I am con­cerned that the finan­cial sys­tem hasn’t recov­ered enough for the Fed­eral Reserve to with­draw from its pro­gram of quan­ti­ta­tive eas­ing.   While most of the […] [read full story]

    Posted in: BANKS, Credit Crisis, Economic Statistics, economy, Federal Reserve, Finance, Liquidity Trap, M1, M2, Monetary Policy, Money Supply, Politics, Public Policy
  2. Money Supply and Economic Data Weekly Watch – Not All Savings Is Good Savings

    Sav­ings increased but for the wrongs rea­sons The per­sonal sav­ings rate in Octo­ber was esti­mated to be 2.4% which was an increase of 1.4% from September’s sav­ings rate.  Nor­mally, dur­ing peri­ods of ris­ing unem­ploy­ment and increas­ing eco­nomic hard­ship the per­sonal sav­ings rate declines because some house­holds spend more than they earn. When con­sumers are con­fi­dent about […] [read full story]

    Posted in: Black Friday, Federal Funds Rate, Federal Reserve, Finance, Liquidity Trap, M2, Money Supply, PCE Price Index, Retail Sales, Savings Rate
  3. CPI Indicates" rel="bookmark">Money Supply and Economic Data Weekly Watch – Deflation Is Worse Than CPI Indicates

    Last week’s eco­nomic data is under­es­ti­mat­ing defla­tion. On Wednes­day the Bureau of Labor Sta­tis­tics (“BLS”) announced that the con­sumer price index (“CPI”) declined by 1.0% in Octo­ber which was the biggest sin­gle one month reported decline since before World War II. Broad based defla­tion exac­er­bates the already severe credit cri­sis and increases cash hoard­ing by […] [read full story]

    Posted in: BANKS, BLS, Business Environment, CPI, Credit Crisis, Deflation, Economic Statistics, economy, Federal Funds Rate, Federal Reserve, Finance, Fiscal Policy, GDP, Inflation, Liquidity Trap, M2, monetary policy, Money Supply
  4. Money Supply and Economic Data Weekly Watch – The Next Crisis Is On The Horizon

    Even while the Fed and Trea­sury are fight­ing defla­tion and a seri­ous reces­sion, they are lay­ing the ground work for a new liq­uid­ity bub­ble with the poten­tial for dev­as­tat­ingly high infla­tion. While the cur­rent news is dom­i­nated by reces­sion­ary GDP, falling con­sumer con­fi­dence, bank­ing res­cues, incred­i­ble stock mar­ket volatil­ity and frozen short term money mar­kets, […] [read full story]

    Posted in: BANKS, Bernanke, Deflation, Economic Statistics, economy, Federal Funds Rate, Federal Reserve, Finance, Fiscal Policy, FOX BUSINESS NETWORK, Inflation, Leverage, Liquidity Trap, M2, monetary policy, Money Supply, REGULATION, Treasury
  5. Money Supply And Economic Data Weekly Watch – Lots of bad news while money supply hits a new all time high

    Money Sup­ply The Fed is back at it again; its push­ing money sup­ply as it tries to rein­flate the econ­omy. Money sup­ply, as mea­sured by sea­son­ally adjusted M2, hit a new all time high of $7,870.4 bil­lion and on a non-seasonally adjusted basis rose to $7,867.5 bil­lion. How­ever, because the global econ­omy is stuck in […] [read full story]

    Posted in: BANKS, Bernanke, Credit Crisis, Deflation, Economic Statistics, economy, Federal Funds Rate, Federal Reserve, Finance, Fiscal Policy, GDP, Inflation, Liquidity Trap, M2, monetary policy, Money Supply
  6. Money Supply and Economic Data Weekly Watch – We’re In Orbit Now!!

    A few weeks ago I wrote that money sup­ply was about to blast off. And, last week the data showed that the Fed was pump­ing money (as mea­sured by M2 on a sea­son­ally adjusted basis) into the sys­tem at greater than a 100% annu­al­ized rate. Well, this week we’ve reached orbit and are cir­cling the […] [read full story]

    Posted in: Economic Statistics, economy, Euro, European Union, Federal Funds Rate, Federal Reserve, Finance, Fiscal Policy, Liquidity Trap, M2, Money Supply
  7. Money Supply And Economic Data Weekly Watch – Reprint of A New York Times Economix Blog Post

    Octo­ber 4, 2008, 6:02 pm Will Paulson’s Two Plans Unplug the ‘Liq­uid­ity Trap’? By Mark Sun­shine Editor’s note: Mark Sun­shine, pres­i­dent of the com­mer­cial lend­ing insti­tu­tion First Cap­i­tal, writes a guest post about why we may be head­ing into what’s called a liq­uid­ity trap. This means that mon­e­tary pol­icy, includ­ing interest-rate changes, can’t pre­vent a […] [read full story]

    Posted in: BANKS, Deflation, Economic Statistics, economy, Finance, Fiscal Policy, GDP, Great Depression, Liquidity Trap, M2, monetary policy, Money Supply, Paulson, Tax policy, Wachovia, Wells Fargo