Sunday, August 2, 2009
Its not working
Part of the solution to a debt deflation spiral is increased bank lending at 0% close as. Now two years in there isn't even a slight sign of this happening, and so all reflation plans fail, and all asset prices with real economic activity continue their decline. I hope Darling is getting desperate because he should be. To think we could have carried out an orderly liquidation of the banks and avoided all this. Oh no, that would have been too easy.