Tuesday, February 23, 2010
The Monetary channel...a continuing series...
This fully explains the hoarding of cash (that mainstream media states is "ready to be deployed") by public companies. Banks are "concerned" about their future financing prospects, tighten lending standards, which flows to companies who now must ape the banks and hoard cash to fund future operations and investment.
And then of course there is this (February then January figures):
Consumer confidence: 46.0 56.5
And Bloomberg has now recognized the deflation threat.