Saturday, June 25, 2011

Bernanke's : It's Velocity not Quatity of Money !

Snapshot Summary
-------------------------
. Line of thoughts shifts from Quatity to Velocity of money
. Its not there is no liquidity but there is no velocity
. Consumers have lost the appetite to spent.
. They are in credit, mortgage to pay, credit card to pay,
. They have spend, decades in advance,
. Bernanke's is out of touch
. Maybe the people have it right, "Spend Less, Save More"
. Thats the mode people are in.
. Or they are in the stock market trying to make some extra bucks.

. Deflating of the debt induced economy.
. To a more real level.
. Time now to pay off mortgae and credit cards which has maxed out.

. Businesses has to reduce price.
. Productivity has to increase.

http://blogs.forbes.com/investor/2011/06/24/despite-bernankes-efforts-money-supply-is-stuck-in-the-slow-lane/

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