INVESTMENT DISCLOSURE: None. Still in cash (and index-linked National Savings Certificates), and missing all those day-trading opportunities.
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5 comments:
Please enlighten me. Is this a good or a bad thing, given the money that was created out of thin air?
Bad for businesses that want to borrow to expand or keep going; OK for banks, buying govt bonds and generally have a whale of a time on fees and bonuses. Government's backed the wrong horse.
I should have thought the concept of growth had long ago entered the realm of old legends on this isle.
Paddington, The fact that M4 money is created out of thin air is not of much relevance, because the only other significant form of money, the monetary base, is also created out of thin air.
The relevance of a change in M4 is that M4 money (i.e. for the most part private bank created money) is a measure of the desire to do business. I.e. people and institutions do not borrow from banks other than to do something with the money created / borrowed.
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