Monday, January 11, 2010

FED POLICY HAS FAILED

If you understand to the extent stimulus has been applied, and ZERO interest rates, previous GDP at 2.2% had to be one of the weakest rebounds based on historic stimulus efforts.

Add to that FACT that Banks are sitting on TONS OF CASH, so FED policy may help banks but what good if money doesn't get out into economy? HERE IS PROOF FED POLICY IS FLAWED.

What good is FED policy if BANK LENDING IS CONTRACTING? I had read where that contraction in range of 7%, this kind of contraction is what you read about when studying Kondratief .

VELOCITY OF MONEY? has not rebounded and is languishing at VERY DEPRESSED LEVELS.

TAX RECEIPTS HAVE PLUNGED.....what proof of "recovery" without recovery here?

IIAA polls are back to bullish ratio last seen near 2007 top.
$ has begun to fall again.
Little guy still hard into bonds, be careful out there.

Duratek

No comments: