Interesting article over at zerohedge.
Of course, the one aspect that Moody's does not discuss at all is the surge in money printing. Yet as monetary aggregates are still falling, and all the excess money is held by banks in the form of excess reserves, the debate continues to be just what catalyst will force banks to part ways with this handy $1.2 trillion buffer.
Not this again. The banks are not holding onto anything at all. If you line up a 100 million people that are able and willing to take on additional credit at an exponential rate, you would be back on the road to growth. The problem is the system is tapped out, you ran out of the amount of lemmings to support your pyramid scheme.
Banks will lend, they have no one to lend to. Why people continue to talk about this is beyond me. You ran out of brick to put in your pyramid, I guess you could start digging up corpses and have them sign on the dotted line.
Inflation is the increase of money. In today's system "credit" is used as money. Credit use is not expanding, it's collapsing. Unless you can find more and more people willing to take on more and more debt, it's over... simple as that. You are simply running out bricks to put in your scheme.
YOU KNOW WHY I KNOW THIS WILL COLLAPSE? BECAUSE I CAN DO SIMPLE MATH AND NOBODY CAN EXPLAIN HOW HUMANS CAN SUPPLY AND DEMAND AT A EXPONENTIAL RATE LONG TERM. IF THEY COULD EVERY PYRAMID SCHEME WOULD BE UP AND RUNNING.