CNBC Article: Banks Flooded With Cash
Posted: Tue Oct 25, 2011 10:03 am
Today there is an article on CNBC.com “In Cautious Times, Banks Flooded With Cash” and it seems to confirm Richard Koo's statements that banks, businesses, and people are paying down debt.
http://www.cnbc.com/id/45027309
It reminds me of the April 2011 Business Insider's article on Koo saying, "this flood of cash isn't driving economic growth because banks, businesses, and people are paying down debt. Koo says that only the government can step in to spend the excess savings in the market."
John, I appreciate your thorough (as always) evaluation of Richard Koo's theories in your response to me September 5, 2010 (I won't quote it here due to its length.)
For me, there is at least a small element of hope for economic recovery in Richard Koo's theories (unlike everything else I've seen/read/heard anywhere -- and I know there's not much (if any!) buy-in from John or others on this forum, but at least Koo's ideas get floated here -- thanks for that).
http://www.cnbc.com/id/45027309
It reminds me of the April 2011 Business Insider's article on Koo saying, "this flood of cash isn't driving economic growth because banks, businesses, and people are paying down debt. Koo says that only the government can step in to spend the excess savings in the market."
John wrote:A web site reader has just called my attention to any article
where Richard Koo explains why quantitative easing has failed,
and why the U.S. is following exactly the same path as Japan.
Lots of graphs follow.> Here's Richard Koo's New Blistering Presentation On Why QE2 Has
> Been A Disaster
> Gregory White | Apr. 11, 2011, 10:57 AM
> Monetary policy has failed alone to lift the U.S. economy, because
> the private sector is obsessed with minimizing debt, according to
> Nomura Chief Economist Richard Ko.
> Speaking this weekend at George Soros' Institute for New Economic
> Thinking conference at Bretton Woods, Koo outlined why the
> U.S. and Europe have missed the lessons of the Japanese
> experience.
> Koo's presentation explains how the U.S and Europe have expanded
> their monetary base, but that this flood of cash isn't driving
> economic growth because banks, businesses, and people are paying
> down debt. Koo says that only the government can step in to spend
> the excess savings in the market.
> http://www.businessinsider.com/richard- ... 011-4?op=1
John
John, I appreciate your thorough (as always) evaluation of Richard Koo's theories in your response to me September 5, 2010 (I won't quote it here due to its length.)
For me, there is at least a small element of hope for economic recovery in Richard Koo's theories (unlike everything else I've seen/read/heard anywhere -- and I know there's not much (if any!) buy-in from John or others on this forum, but at least Koo's ideas get floated here -- thanks for that).