tag:blogger.com,1999:blog-2039122120198460734.post4675059684405004477..comments2011-09-26T11:32:43.428-07:00Comments on Inframarginal Divergence: When bad men combine, the good must associateFroot Loophttp://www.blogger.com/profile/06425450867230626092noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-2039122120198460734.post-20782679780219247142011-09-26T11:32:43.428-07:002011-09-26T11:32:43.428-07:00I would suggest that the Zero bound effect is redu...I would suggest that the Zero bound effect is reducing the Feds leeway! Look at the problem another way, the ability of the Feds to create money is constrained by the instrument it used, deleveraging by Americans has reduced the velocity of money -- there is, in a nutshell, no room for Fed policy to translate into expansionary money growth. The cycle is broken with Financial institutions holding US gov't bonds -- not lending not because of credit standards but low demand.Frozen in the Northhttps://www.blogger.com/profile/04901959687094626879noreply@blogger.comtag:blogger.com,1999:blog-2039122120198460734.post-89236151297956806102011-09-26T09:27:36.973-07:002011-09-26T09:27:36.973-07:00Very intelligent blog. Keep up the good work.Very intelligent blog. Keep up the good work.Benjamin Colehttps://www.blogger.com/profile/14001038338873263877noreply@blogger.com