Comments on: Andy Xie: “Whole world is drinking poison to quench the thirst” http://www.creditwritedowns.com/2009/12/andy-xie-whole-world-is-drinking-poison-to-quench-the-thirst.html Finance, Economics and Markets Fri, 10 Feb 2012 00:37:00 +0000 hourly 1 By: demandside http://www.creditwritedowns.com/2009/12/andy-xie-whole-world-is-drinking-poison-to-quench-the-thirst.html#comment-57716 demandside Tue, 08 Dec 2009 16:06:00 +0000 http://www.creditwritedowns.com/2009/12/andy-xie-whole-world-is-drinking-poison-to-quench-the-thirst.html#comment-57716 Xie is exactly right. The bet on bank's balance sheets by Bernanke has come a cropper. (alliteratively speaking) Zero interest rates are intended to help the banks with their margins. Instead they are financing speculative positions. The intention is not good. The banks need to be restructured. The speculation is even worse. We need to turn to household incomes, with jobs, and business incomes, with demand for energy services and infrastructure. Xie is exactly right. The bet on bank’s balance sheets by Bernanke has come a cropper. (alliteratively speaking) Zero interest rates are intended to help the banks with their margins. Instead they are financing speculative positions. The intention is not good. The banks need to be restructured. The speculation is even worse.

We need to turn to household incomes, with jobs, and business incomes, with demand for energy services and infrastructure.

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