Reply #55: Strangling any future recovery

[Hawkowl]

So a bank has two options, either hold cash as reserves or use it to make loans. So this is simply an austerity measure that will result in once again denying the availability of loans to credit worthy businesses and consumers.

This is going to ensure a very, very, long depression and almost guarantees a deflationary cycle. Well, except for the rigging of the commodity markets which will see prices through the roof. Oil and gas prices continue to rise even as economic activity falls and alternative energy use increases worldwide.

Every week, the data gets more miserable, and the policy "solutions" more terrifyingly abysmal.