Saturday, November 17, 2012

Excerpt from Doug Noland Essay "WHERE MONEY DIES"

"There was talk this week of the need for larger monthly QE from the Fed. The markets also anxiously await the firing up of Dr. Draghi's bazooka. A new Japanese government could see the Bank of Japan further crank up their white-hot electronic printing press. With new leadership in China, perhaps they'll be ready to push further on the accelerator. It all seems rather "late-cycle" to me. And, I'll suggest, a loss of confidence in all these electronic journal entries - the global financial system more generally - is this historic cycle's greatest vulnerability. As we witnessed not many years ago, one day everyone is so enjoying the dance party and the next they're fighting for the exits. It's a spiking the punch rather than removing the punchbowl dilemma."  New home for Doug Noland

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