Mish's Global Economic Trend Analysis Mon 2009-09-21 14:09 EDT
Is Pent-Up Inflation From Fed Printing Waiting On Deck?
Inquiring minds are wondering about the possibility of "pent-up" inflation from the massive expansion money supply by the Fed...Hardly. A funny thing happened to the inflation theory: Banks aren't lending and proof can be found in excess reserves at member banks. Because of rising credit card defaults, commercial real estate defaults, foreclosures, walk-aways, and other bad debts, banks need those reserves to cover future losses...banks are insolvent, unable or unwilling to lend. Moreover, tapped out consumers are unable or unwilling to borrow.
deck; Fed Printing Waiting; Inflation; Mish's Global Economic Trend Analysis; pent.