Martin Hutchinson has a 5 October 2009 post at Prudent Bear which I agree with. Here's a link: http://www.prudentbear.com/index.php/thebearslairview?art_id=10295.
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From Hutchinson... and true...
Small business loans will still offer the highest interest margins to lenders, so if liquidity remains available and lenders are not concerned about their own funding, they will be made.
Uhmmm not if bankers don't believe that demand is returning...
This is a very good analysis but relies on the interest rate manipulation to "jumpstart" the economy... does that really work for depressions?
We are paying for decades of easy money and drunken materialism... can you "jumpstart" sobriety?
This might though...
Most important, a really frightening crisis in the Treasury bond market would bang the heads of Congress and the Obama administration against the wall, and force them to start getting the budget deficit under control.
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