But what they perceive as newly abundant liquidity can readily disappear. Any onset of increased investor caution elevates risk premiums and, as a consequence, lowers asset values and promotes the liquidation of the debt that supported higher asset prices. This is the reason that history has not dealt kindly with the aftermath of protracted periods of low risk premiums
Showing posts with label money supply. Show all posts
Showing posts with label money supply. Show all posts
August 12, 2007
I'll leave you this week with two quotes from the person most responsible for the housing bubble, and eventual crash - Mr. Alan Greenspan
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8/12/2007
12
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Labels: alan greenspan, all good manias must come to an end sometime, asset bubbles, asset prices, bad debt, crashes, money supply, panics, risk
July 03, 2007
WARNING: The US Government does not want you to see these numbers
Proceed at your own risk, as ignorance is bliss... And get ready...
Here's M3 Money Supply reconstructed. Yes, the M3 that the Fed stopped publishing last year. Why did they stop publishing it? You need to ask?

And here's inflation based on the components that used to measure inflation as recently as 1990, before the government decided to change things around to hide what was really happening.
Remember, they base benefits payouts and raises based on inflation, so it's in their (and our) best interests (to avoid going insolvent, raising taxes or printing more money) to keep the "official" inflation reading low, even though we all know damn well things are WAY more expensive now than they were a year or two ago. Watch for inflation to remain tame as rents plummet with the oversupply of housing and economy softening.
Remember, they base benefits payouts and raises based on inflation, so it's in their (and our) best interests (to avoid going insolvent, raising taxes or printing more money) to keep the "official" inflation reading low, even though we all know damn well things are WAY more expensive now than they were a year or two ago. Watch for inflation to remain tame as rents plummet with the oversupply of housing and economy softening.

Posted by
blogger
at
7/03/2007
24
comments
Labels: inflation, liars, m3, money supply, shadow statistics
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