Tuesday, January 8, 2013

Velocity Of Spending Money Falls To Early 1990s Levels As Americans Hoard It

Meaning money isn't changing hands for new goods and services like it had been after 1996. M1 has skyrocketed from $1.4 trillion in 2008 to in excess of $2.4 trillion today (here). That's about $21 billion a month over four years being withheld from spending by consumers.

Another bubble bursts.