Who is hiding all the T-Bills?
Posted: Fri Aug 19, 2011 9:21 am
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It's funny how the demand for money (aka, hard cash) and the demand for loanable funds (loaned cash at interest) can be so much different.
I think that's the trait of a balance sheet recession... in the 70's and early 80's, people had the balance sheets and wages to side-step inflation by bargaining for higher wages and taking on debt.
Not any more. People want cash, even if it earns them 1%, but people DON'T want to borrow to get it, even if it's at 3-5%.