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To: expat_panama; Lurkina.n.Learnin
Higher reserves explain part of it but can't explain all.

Another part is increased lending standards as well as "shadow standards" that banks impose above and beyond those that are required.

Part of it is related to lack of small business creation.

Part of it is related to companies not wanting to increase debt/leverage (although that is easing) due to environment (regs and legs) uncertainty.

All these things coupled with "hoarding" are driving the reserves and the consequent collapse in velocity.

20 posted on 09/08/2014 4:45:42 AM PDT by Wyatt's Torch
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To: expat_panama; Lurkina.n.Learnin
This will help:


21 posted on 09/08/2014 8:11:18 AM PDT by Wyatt's Torch
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