LJ, I think you raise an interesting point, i.e. the mechanism for getting all this money that is being created to be used for buying stuff rather than sit in banks.

There are people out there still prepared to borrow money. I for one would be happy to take a $10m off Helicopter Ben at 2% and invest it in shares in Penn Wenn Energy at a 20% yield. Then I can retire on the spread and gradually buy Tyhee with my surplus income...

Back in the real world, I suspect we are going to see some unusual practices of a monetary nature before long to get people spending again. I think most ordinary Westerns have rather enjoyed the consumtion binge of the last decade or so and if credit markets were open for business and the rates were cheap enough, I don't think it would take a lot to get them spending again.

The key thing is to find a bottom in the housing market as houses are the assets that underpin the whole credit system. This is crucial for consumer confidence.