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Post by Deleted on Oct 17, 2020 11:41:28 GMT
Thought it might be worth a thread, given the double crossover comments on the Covid and Brexit threads. As a starter, thought this article might be informative. Quote "Global monetary bodies and government stimulus programs have added trillions to global liquidity that has not been used by the real economy. This excess liquidity has boosted risk assets while at the same time adding trillions to deposits as well as lowering consumer debt. Corporations and individuals are simply not borrowing on a net basis. Major banks reported that deposits were up, on average, 30% with tepid loan demand. Banks are now overcapitalized. We see substantial pent-up consumer demand ahead. At the same time, corporations will keep tight reins on spending, thereby generating excess cash flow as the economic recovery escalates next year." Full article here. seekingalpha.com/article/4379530-world-awash-liquidityWhich is why (Eric) it would be stupid to crash the British Economy for the sake of 6 months of national pay support during the time of activity constraints because of Covid. Even more stupid to suppress our economic potential by withdrawing from the world's largest free trade area. But hey ho |
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Post by Deleted on Oct 18, 2020 14:26:20 GMT
Thought it might be worth a thread, given the double crossover comments on the Covid and Brexit threads. As a starter, thought this article might be informative. Quote "Global monetary bodies and government stimulus programs have added trillions to global liquidity that has not been used by the real economy. This excess liquidity has boosted risk assets while at the same time adding trillions to deposits as well as lowering consumer debt. Corporations and individuals are simply not borrowing on a net basis. Major banks reported that deposits were up, on average, 30% with tepid loan demand. Banks are now overcapitalized. We see substantial pent-up consumer demand ahead. At the same time, corporations will keep tight reins on spending, thereby generating excess cash flow as the economic recovery escalates next year." Full article here. seekingalpha.com/article/4379530-world-awash-liquidityWhich is why (Eric) it would be stupid to crash the British Economy for the sake of 6 months of national pay support during the time of activity constraints because of Covid. Even more stupid to suppress our economic potential by withdrawing from the world's largest free trade area. But hey ho Not an expert in economics by any means. But if it's a 'normal' recession, why are the stock market and house prices are rocketing? Is traditional economic analysis thrown out of the window now? |
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Post by Deleted on Oct 18, 2020 15:05:15 GMT
Thought it might be worth a thread, given the double crossover comments on the Covid and Brexit threads. As a starter, thought this article might be informative. Quote "Global monetary bodies and government stimulus programs have added trillions to global liquidity that has not been used by the real economy. This excess liquidity has boosted risk assets while at the same time adding trillions to deposits as well as lowering consumer debt. Corporations and individuals are simply not borrowing on a net basis. Major banks reported that deposits were up, on average, 30% with tepid loan demand. Banks are now overcapitalized. We see substantial pent-up consumer demand ahead. At the same time, corporations will keep tight reins on spending, thereby generating excess cash flow as the economic recovery escalates next year." Full article here. seekingalpha.com/article/4379530-world-awash-liquidityWhich is why (Eric) it would be stupid to crash the British Economy for the sake of 6 months of national pay support during the time of activity constraints because of Covid. Even more stupid to suppress our economic potential by withdrawing from the world's largest free trade area. But hey ho Not an expert in economics by any means. But if it's a 'normal' recession, why are the stock market and house prices are rocketing? Is traditional economic analysis thrown out of the window now? No Grover As the article indicates, when liquidity increases in the way it has, it seeks a home. You then get Asset Bubbles like in the stock market and real estate. When confidence returns a lot of that returns to consumption, which causes inflation. Two of the downside risks of Government borrowing more and or quantitative easing (central banks increasing banking liquidity) |
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Post by stuart1974 on Oct 19, 2020 9:39:24 GMT
How about a Ministry of Supply? It could take the requirements from the appropriate department and source them, saving procurement costs and duplication.....possibly.
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Post by Deleted on Oct 19, 2020 10:05:58 GMT
How about a Ministry of Supply? It could take the requirements from the appropriate department and source them, saving procurement costs and duplication.....possibly. That doesn't appeal to me. Centralised power corrupts. |
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