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What liquidity shortage?

Posted on Friday, August 31, 2007 at 02:58PM by Registered CommenterNS Partners | CommentsPost a Comment

Gloom-mongers think a credit crunch will slow global growth, hit corporate earnings and weaken stock markets. They could be right but I am not betting that way. A key reason is the strength of global money trends. G7 real broad money growth is running at 7% year-on-year, the highest for five years and far above industrial output expansion of 2%. This implies there is “excess” money available to support economies and markets.
g7-industrial-output.jpg





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