Sunday, February 26, 2012

VELOCITY OF MONEY


$ TRILLIONS POURED INTO "ECONOMY"?  Evidently not, but it has been going into RISK ASSETS and we are certainly not getting much bang for the buck by this measure, the turnover of money in the economy
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2 comments:

farm land investment said...

That's a great point. Remember, it does not matter how large the FED's balance sheet is, GDP growth also comes down to how fast the velocity of money is.

12:50 PM
Marc R said...

And it's the law of diminishing returns, but they are too stupid to change! What do banks need? Deposits...what attracts deposits? a decent interest rate paid for them..good luck with that in current 0% FED rate environment.

They are blowing ANOTHER BUBBLE, this market has NO business where it is.....that tells me many will look back and wonder AGAIN why they stayed too long for the party.

GDP is influenced by? stock market direction. COnsumer spending includes? gasoline purchases...

3:57 PM

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