In Japan, for example, the debt deflation started in 1990 and price deflation started in 1992 or 1993. That's what we're in for right now.
More Quotes from Lacy Hunt:
I don't think any benefit of the dividend tax elimination is worth the increase in the deficit.Lacy Hunt
The country is entering a period of debt deflation, where households and businesses are forced to move funds from spending to debt repayment. This forces down economic growth and reduces inflationary pressures and long-term interest rates.
Lacy Hunt
The net effect was to induce a tightening mode in the markets, in bank lending and in total bank reserve growth, while interest rates rose significantly, especially for corporate bond issues. In retrospect, that's not looking very smart.
Lacy Hunt
To have an effective monetary policy, you have to have a robust borrowing and lending cycle, ... The problem is that households and businesses are both overextended, while banks have problems with their current loan base. So we don't have a viable borrowing and lending cycle, which means that monetary policy is not working effectively.
Lacy Hunt
The problem is, the private sector doesn't have the balance sheet capacity to take on more debt, and the banking system is not in a position to extend more credit. So monetary policy may not work at all.
Lacy Hunt
This isn't going to be settled overnight, ... In New York, there will be debris removal and shoring up subway lines, but not massive reconstruction. People will use up the extra space available in New York, New Jersey and Connecticut. That doesn't mean they're going to be building new buildings.
Lacy Hunt
Readers Who Like This Quotation Also Like:
Based on Topics: Debts QuotesI have had some problems because the French don't like people to have success, they don't like the number one.
Alain Prost
Taking an interest in what others are thinking and doing is often a much more powerful form of encouragement than praise.
Robert Martin
There is one thing a professor can be absolutely certain of: almost every student entering the university believes, or says he believes, that truth is relative.
Allan Bloom