The Editors’ Quote of the Day:

” We are now going into a brand-new period of forced thriftiness in which earnings and net worth decrease or stagnate while the expense of living increases and loaning is no longer smooth. To state that these modifications will stun the system is putting it slightly. Here’s the essential dynamic in forced thriftiness: earnings can drop precipitously with no ratcheting to slow the decrease, however costs just ratchet greater, or decrease by almost invisible degrees; that is, expenses are “sticky” and decline to move down as quickly as earnings. The 2nd essential dynamic in forced thriftiness is the tightening up of financing and the increasing expense of obtained cash. When lending institutions ……

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