USA: Cyclical structure of credit crunches

Enzio — Sat, 11 Oct 2008 20:15:29 +0800

Teaser: We have put order into the current chaos by putting current events into the calm harbour of The Economic Clock™. We have suggested that this particular manifestation of an "excess demand for money" is pernicious: it is harmful because it is the private sector that does not want to lend. In simple talk: Central Banks can alter monetary policy at a board meeting; commercial banks alter lending policy only when the pendulum of fear has swung back to fear. Given that Prof. Kindleberger's "panic" stage of the crisis has set in, I now have analysed the structure of credit cycles and give you a handle on strategic timing issues.

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