No ordinary recession: There is much to fear beyond fear itself
15/02/2009 § Leave a comment
This recession is different. Balance sheets of consumers, firms, and banks are under strain. The private sector is bent on reducing debt and this offsets Keynesian stimulus more than standard flow calculations would suggest. Bank deleveraging is by far the most dangerous. Fiscal stimulus will not have much effect as long as the financial system is deleveraging.
GET OUT WHILE YOU STILL CAN!!