The metaphor is severely flawed. Now, like then, the problem isn't a lack of things to paint. It's an unwillingness to dip a brush.
But not it's even worse. I lacking the wit to continue the imagery, but now pouring more money into the system doesn't result in it siting idly like paint in an unopened can. It results in more of the same highly leveraged speculative ventures that caused the problem in the first place.
Love it! Gonna steal it. :)
ReplyDeleteHey, Gene. I had the same reaction as you. :)
ReplyDeleteLots more Depression-era quotes in the Kaminska post at FT.
The metaphor is severely flawed. Now, like then, the problem isn't a lack of things to paint. It's an unwillingness to dip a brush.
ReplyDeleteBut not it's even worse. I lacking the wit to continue the imagery, but now pouring more money into the system doesn't result in it siting idly like paint in an unopened can. It results in more of the same highly leveraged speculative ventures that caused the problem in the first place.
JzB
But NOW, it's even worse . . .
ReplyDeleteJazz, I was thinking Excess Reserves. I think paint-in-a-barrel is a severely excellent metaphor for excess reserves.
ReplyDelete... and QE++
ReplyDeleteIf you put more paint in the barrel than the barrel can hold, something has to give
ReplyDeleteHey, Nute. Yeah, my wife would want me to paint something. She would put the paint, the paintbrush, and the something all on the credit card!
ReplyDeleteBut if the Fed wants somebody to hold money, I'll hold it for them. And there is NO limit to how much money I am willing to hold.