Saturday 24 October 2009

Best sentence read today

"The good news out of the bad news is that because money [currently] has no velocity, we have no inflation."

(Brackets mine.) From CNBC's A Conversation with Art Cashin, UBS.

Governments have turned the printing presses on but the banks are not lending for economic activity. Instead, all that money is propping up real estate prices and powering another bubble on the stock markets.