http://www.webmetricsguru.com/archives/2008/12/downturns-are-predictable-at-least-this-one-is-was/ Web Analytics, Social Media and Search Marketing Wed, 10 Mar 2010 06:37:24 -0500 http://wordpress.org/?v=2.9.2 hourly 1 http://www.webmetricsguru.com/archives/2008/12/downturns-are-predictable-at-least-this-one-is-was/comment-page-1/#comment-2849 Michael Hallinan Mon, 15 Dec 2008 13:00:59 +0000 http://www.webmetricsguru.com/?p=3974#comment-2849 If only it WERE a liquidity crisis it would be far more easily solved... just pump enough money in to restore liquidity. That's what the Fed has been trying to do, and failing to achieve the desired effect, because it's not a liquidity problem, it's a solvency problem. The global financial system has been pyramiding debt for decades, as have U.S. consumers. That house of cards is collapsing, leaving banks, manufacturers and everyday people flat out insolvent. Bankrupt. Nada. All that wealth simply gone. We'll be years deleveraging from this debt binge. If only it WERE a liquidity crisis it would be far more easily solved… just pump enough money in to restore liquidity. That’s what the Fed has been trying to do, and failing to achieve the desired effect, because it’s not a liquidity problem, it’s a solvency problem. The global financial system has been pyramiding debt for decades, as have U.S. consumers. That house of cards is collapsing, leaving banks, manufacturers and everyday people flat out insolvent. Bankrupt. Nada. All that wealth simply gone. We’ll be years deleveraging from this debt binge.

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