Money supply isn't growing. The NY Fed's graphs show almost 0.00% increase over the past 12 months. Banks aren't lending, and the public doesn't have access to cash. How can the economy or the stock market grow under these conditions?
http://www.newyorkfed.org/research/directors_charts/itable_18.pdf
2 comments:
MARCH 11, 2010
Credit Market Springs to Life
Signs of Confidence in World Economy
"in 2010, U.S. corporations have issued $195.2 billion of debt"
"Risk premiums...are falling again for corporate bonds."
Absolutely right - credit spreads are narrowing as investors take on more risk.
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