Random Feed wrote an interesting post today on
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By: Mike Whitney Jul 04, 2009 There’s a big difference between inventory-driven recessions and credit-driven recessions. An inventory recession is caused by a mismatch between supply and demand. It’s the result of overcapacity and under-utilization which can only work itself out over time as inventories are pared back and demand builds. Credit-driven recessions are a different story altogether. They typically last twice as long as and can precipitate financial crises. The current recession i

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Random Feed wrote an interesting post today on
Here’s a quick excerpt
There’s a big difference between inventory-driven recessions and credit-driven recessions. An inventory recession is caused by a mismatch between supply and demand. It’s the result of overcapacity and under-utilization which can only work itself out over time as inventories are pared back and demand builds. Credit-driven recessions are a different story altogether. They typically last twice as long as and can precipitate financial crises. The current recession is a severe credit bust of Depressi

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Random Feed wrote an interesting post today on
Here’s a quick excerpt
It’s interesting these days to listen to economists or pundits who read through reams of data and declare, “There’s plenty of credit — just not at the price you want!” and then actually sit down with those who are trying to get deals done, and it’s a very different story. Yesterday some colleagues and I had lunch with a wealthy private investor (who claims to have access to $1.5 billion cash and another $500 million in other sources), and for people like him, the lack of credit — which he doe

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Random Feed wrote an interesting post today on
Here’s a quick excerpt
By: Mike Whitney Apr 24, 2009 Why is the media misleading the public about housing? The housing market is crashing. There are no “green shoots” or “glimmers of hope”; the market is worn to a stump, it’s kaput. Still, whenever new housing figures are released, they’re crunched and tweaked and spin-dried until they tell a totally different story; a hopeful story about an elusive “light in the tunnel”. But there is no light in the tunnel; it’s a myth. The truth is, there’s no sign of a turnaro

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