Issachar
December 12th, 2007, 10:12 AM
Since the global credit crunch hit with force in August, other central banks as well as the Federal Reserve have been injecting massive amounts of money into the banking system in an effort to keep credit flowing.
However, those efforts have only been partially successful. Many businesses and consumers report rising trouble in obtaining loans as banks become more fearful about extending credit in the wake of a surge in bad loans stemming from the U.S. housing crisis. http://biz.yahoo.com/ap/071212/fed_credit_crunch.html
The above quote is from the end of the article. The main part of the article is about how various central banks are now collaborating more than ever to get more "out of thin air" money into the global system to keep all their buddies afloat. This is only going to result in some very serious price inflation eventually as they continue to inflate the money supply. It's interesting how open they are with all this these days. That merely means that they know more and more folks are aware of the artificiality of the economy but don't care. As long as things are good today. Tabs always come due though. The piper must one day be paid. It sure is a fun party in the mean time though.
Issachar
However, those efforts have only been partially successful. Many businesses and consumers report rising trouble in obtaining loans as banks become more fearful about extending credit in the wake of a surge in bad loans stemming from the U.S. housing crisis. http://biz.yahoo.com/ap/071212/fed_credit_crunch.html
The above quote is from the end of the article. The main part of the article is about how various central banks are now collaborating more than ever to get more "out of thin air" money into the global system to keep all their buddies afloat. This is only going to result in some very serious price inflation eventually as they continue to inflate the money supply. It's interesting how open they are with all this these days. That merely means that they know more and more folks are aware of the artificiality of the economy but don't care. As long as things are good today. Tabs always come due though. The piper must one day be paid. It sure is a fun party in the mean time though.
Issachar