The research shows that people have lower loans/deposits in a contraction. There is a reason, a contraction implies a drop in economies of scale and that implies fewer items in the consumer index.
The fear is not the S/L ratio but why we contracted in the first place. Economists who believe time-cost averaging were wrong in the first place so most of their conclusions about demand shortfall will be bogus.
So what caused the contraction? At least 2/3s of it was the covid. If ever there was a need to borrow money it would be to invest in a covid anti-body that cracks the corona shell. An inhaler with the anti-bodies taken as needed depending on local outbreak. The anti-bodies last for three months in respiratory tissue and breaks the spike protein. The infection rate drops, traditional flu like care is much more effective, and the corona eventually disappears (to be replaced with another bird virus).
So what caused the contraction? At least 2/3s of it was the covid. If ever there was a need to borrow money it would be to invest in a covid anti-body that cracks the corona shell. An inhaler with the anti-bodies taken as needed depending on local outbreak. The anti-bodies last for three months in respiratory tissue and breaks the spike protein. The infection rate drops, traditional flu like care is much more effective, and the corona eventually disappears (to be replaced with another bird virus).
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