Tuesday, August 01, 2006

Borrow and spend

Noland:

"I am today mindful of the financial sector simply “redeploying” its lending infrastructure away from household mortgage loans to commercial real estate, corporate, energy, small business, education, etc. It is a central tenet of Macro Credit Theory that if the Financial Sphere is willing to lend and there is a general expansionary/inflationary bias within the Economic Sphere, borrowers will be inclined to borrow and spend."

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