Tuesday, September 02, 2014

Fed finally admits they created a liquidity trap.

Fed: US consumers have decided to 'hoard money'.

"One of the great mysteries of the post-financial crisis world is why the U.S. has lacked inflation despite all the money being pumped into the economy.

The St. Louis Federal Reserve thinks it has the answer: A paper the central bank branch published this week blames the low level of money movement in large part on consumers and their "willingness to hoard money." The paper also cites the Fed's own policies as a reason for consumers' unwillingness to spend..
"

I first posted about this in May of 2013. Also here, because if you own anything you understand completely why this is happening.

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