“The ideas of economists and political philosophers, both when they are right and when they are wrong, are more powerful than is commonly understood. Indeed the world is ruled by little else. Practical men, who believe themselves to be quite exempt from any intellectual influence, are usually the slaves of some defunct economist.” - John Maynard Keynes
Tuesday, February 10, 2009
Credit Spreads I
This is a graph from Calculated Risk, this is the game changer. If spreads get restored here, and the FED's consumer loan program loosening lending recovery will happen in late 2009. If not we could be looking at Japan 1990s type stagnation.
![[MoodysSpreadJan2009.jpg]](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjgr3bzOsd6yzBLh8Y1z7TaRIgH4xTGS5eDqYtGjahKo0xQ-XE03L6GCOeyO_jqrPZL6GdHVINALmjRrslXAFUYNvBiPhfTbQNv2jvy-5QYgjAfpy1vmiLlkycu52ydMCuFHejHDqNljpk/s1600/MoodysSpreadJan2009.jpg)
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