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<p>[QUOTE="ToughCOINS, post: 2205538, member: 20480"]The problem is not the money supply . . . there's more than enough money out there. Consider the monstrous cash positions of the large caps, and all of the money offshore that could be repatriated. Consider all of the money banks are sitting on because most of the eager borrowers have poor credit records and cannot receive loans.</p><p><br /></p><p>The issue is that the people who used to spend it hand over fist are now concerned about spending it at the wrong time and on the wrong things. They want to know their money is well spent, and with no credible reason for them to believe now is the time, they are as tight-fisted as can be.</p><p><br /></p><p>No, we don't need more money in the economy, we need more money velocity. </p><p><br /></p><p>We need a reason to believe that a dollar spent will return at least a dollar in value . . . not promises of good times ahead. We need sustained performance across all industries . . . not one good quarterly report, followed by corrections to the report, or followed by a bad quarter. That does nothing to fuel the fire.</p><p><br /></p><p>We need a major psychological event . . .[/QUOTE]</p><p><br /></p>
[QUOTE="ToughCOINS, post: 2205538, member: 20480"]The problem is not the money supply . . . there's more than enough money out there. Consider the monstrous cash positions of the large caps, and all of the money offshore that could be repatriated. Consider all of the money banks are sitting on because most of the eager borrowers have poor credit records and cannot receive loans. The issue is that the people who used to spend it hand over fist are now concerned about spending it at the wrong time and on the wrong things. They want to know their money is well spent, and with no credible reason for them to believe now is the time, they are as tight-fisted as can be. No, we don't need more money in the economy, we need more money velocity. We need a reason to believe that a dollar spent will return at least a dollar in value . . . not promises of good times ahead. We need sustained performance across all industries . . . not one good quarterly report, followed by corrections to the report, or followed by a bad quarter. That does nothing to fuel the fire. We need a major psychological event . . .[/QUOTE]
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