Bond king dethroned,did Bill Gross gross out Pimco? Big news,but neither David Tepper or Warren Buffett think so,Bill Gross his left Pimco,no doubt just before firing squad,and has made a safe landing at Janus.
Now in the economy there dichotomy,the Federal Reserve System(the FED) is giving money away to banks,hoping the banks will start lending more,so there be more investment in factories,plants and equipment creating jobs.The trouble is at same time the FED is giving money aways to the bank it insist on higher reserve requirements,which makes money tighter,along all fines the government is putting on the bank and less is likely to lend out.
When people talk about the money supply they just think in term of interest rates,not velocity of money(how quickly it turn over) ,indeed,you can have zero interest(and some extent that's what we have today)but people don't turn over the money(spent it,or invest it) the money supply isn't going increase,henceforth,interest rates become irrevent and this a sign of weak economy.
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