Does money contraction signal serious trouble?

[Black Swan]

Good piece from AEP again, 'double dip' or a runaway rollercoster without a brake?...Worrying statement from Tim Congdon contained within, " The G20 drive for higher ratios in the middle of a downturn is the equivalent of the liquidationist stupidity of the early 1930s. Our leaders risk pushing the world economy over a cliff..."


Does money contraction signal serious trouble?

Does money contraction signal serious trouble? – Telegraph Blogs

 

[montmorencyt2w]

Well it makes sense to me if people (at least those who believe there will be a recovery and that the stock market will one day take off again seriously) to be putting money into mutual funds while they are still relatively low - the same money will buy more units/shares - in the hope that they will be worth much more in the not too distant future.


Not directly relevant, but always interesting, here is Ashraf's round-up for today:

YouTube - Afternoon FX Highlights by Ashraf Laidi

 

[N Rothschild]

Good piece from AEP again, 'double dip' or a runaway rollercoster without a brake?...Worrying statement from Tim Congdon contained within, " The G20 drive for higher ratios in the middle of a downturn is the equivalent of the liquidationist stupidity of the early 1930s. Our leaders risk pushing the world economy over a cliff..."


Does money contraction signal serious trouble?

Does money contraction signal serious trouble? – Telegraph Blogs

YES YES YES a million times YES

 

[N Rothschild]

wow what a quote

"Econometric models are useless once events take a dramatic turn. They are dangerous, allowing ideologues to push their theories beyond the point of common sense."

me thinks alot of the t2w half whits should take note.

 

[poborsky]

I think its about what happens after the current US administration make another huge blunder and announce the next round of money printing then the Chinese and Japanese dont turn up for the following bond auction.

 

[SAINT]

Stock market valuations are the only thing that's recovering.

Markets rose on the ISM yesterday, yet the prices component fell 14% in the month, which is another contraction sign.