Nice Kasriel Rant!
Paul Kasriel is really one of the best! Make sure you read the entire piece and the rant ( it´s a rant by his standards) and click on the Headline.
Guess what? In each of the first two quarters of 2007, this combination of a negative yield spread and contracting real monetary base has obtained.
> Keep this in mind when everybody on Wall Street is spinning and pulling up several useless indicators that suggest the economy is doing ok........
> Behaltet das im Hinterkopf wenn alle demnächst wieder rosarot sehen und haufenweise Statistiken aus dem Hut zaubern die erklären sollen warum es der Wirtschaft doch gut geht..........
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Der Mann hat es einfach drauf! Kann jedem empfehlen das gesamte Werk zu lesen. Klickt dafür bitte auf die Überschrift.
...It is the combination of the behavior of a yield spread and the CPI-adjusted monetary base. The yield-spread variable is the difference between the yield on the Treasury 10-year security and the federal funds rate. The monetary base consists of the reserves created by the Federal Reserve for the banking system and the currency held by the public.
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> Keep this in mind when everybody on Wall Street is spinning and pulling up several useless indicators that suggest the economy is doing ok........
> Behaltet das im Hinterkopf wenn alle demnächst wieder rosarot sehen und haufenweise Statistiken aus dem Hut zaubern die erklären sollen warum es der Wirtschaft doch gut geht..........
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Labels: kasriel, recession, us recession
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