{"id":3572,"date":"2009-10-03T22:50:46","date_gmt":"2009-10-03T22:50:46","guid":{"rendered":"http:\/\/zmetro.com\/?p=3572"},"modified":"2009-10-03T22:50:46","modified_gmt":"2009-10-03T22:50:46","slug":"one_year_later","status":"publish","type":"post","link":"http:\/\/www.zmetro.com\/?p=3572","title":{"rendered":"One Year Later, Little Has Changed"},"content":{"rendered":"

Ed Wallace<\/a>: <\/p>\n

“By buying U.S. Treasuries and mortgages to increase the monetary base by $1 trillion, Fed Chairman Ben Bernanke didn\u2019t put money directly into the stock market, but he didn\u2019t have to. With nowhere else to go, except maybe commodities, inflows into the stock market have been on a tear. The dollars he cranked out didn\u2019t go into the hard economy, but instead into tradable assets.”<\/p>\n

\u2014 “The Bernanke Market,” Wall Street Journal, July 15, 2009<\/p>\n

“In the last week alone, the European Central Bank allocated the record sum of $619 billion to 1,1,00 financial institutions \u2013 at a paltry 1 percent interest rate. And yet the money is not going where the central banks want it to go, namely into the pockets of businesses and consumers \u2013 at least not at reasonable interest rates.”<\/p>\n

\u2014 “How German Banks are Cashing In on the Financial Crisis,” Der Spiegel, July 1, 2009<\/p>\n

Two weeks ago, in meetings with their North Texas dealers, both Toyota and Honda voiced concern about how the economic recovery was going to hold up over the next few quarters. It wasn\u2019t public news yet in the States, but Japanese executives already knew that their imports and exports had fallen sharply through the summer. And, while our business media were cheerleading because the Dow Jones was once again flirting with 10,000, in Japan their exports had just fallen 36 percent; metal shipments to the U.S. were down by more than 80 percent, automobile shipments by 50 percent. This was a problem here, too: In August America\u2019s dealers seriously needed Japanese vehicles to restock their depleted inventories.<\/p>\n

Toyota and Honda took different tacks for the fourth quarter. Toyota said it will spend $1 billion in advertising to move the retail market. Honda, always more cautious in difficult times, said it would spend nothing during the same period. Honda added that it will keep dealer inventories at a 30-day supply of unsold vehicles, half the inventory considered normal.<\/i><\/p><\/blockquote>\n","protected":false},"excerpt":{"rendered":"

Ed Wallace<\/a>: <\/p>\n

“By buying U.S. Treasuries and mortgages to increase the monetary base by $1 trillion, Fed Chairman Ben Bernanke didn\u2019t put money directly into the stock market, but he didn\u2019t have to. With nowhere else to go, except maybe commodities, inflows into the stock market have been on a tear. The dollars he cranked out didn\u2019t go into the hard economy, but instead into tradable assets.”<\/p>\n

\u2014 “The Bernanke Market,” Wall Street Journal, July 15, 2009<\/p>\n

“In the last week alone, the European Central Bank allocated the record sum of $619 billion to 1,1,00 financial institutions \u2013 at a paltry 1 percent interest rate. And yet the money is not going where the central banks want it to go, namely into the pockets of businesses and consumers \u2013 at least not at reasonable interest rates.”<\/p>\n

\u2014 “How German Banks are Cashing In on the Financial Crisis,” Der Spiegel, July 1, 2009<\/p>\n

Two weeks ago, in meetings with their North Texas dealers, both Toyota and Honda voiced concern about how the economic recovery was going to hold up over the next few quarters. It wasn\u2019t public news yet in the States, but Japanese executives already knew that their imports and exports had fallen sharply through the summer. And, while our business media were cheerleading because the Dow Jones was once again flirting with 10,000, in Japan their exports had just fallen 36 percent; metal shipments to the U.S. were down by more than 80 percent, automobile shipments by 50 percent. This was a problem here, too: In August America\u2019s dealers seriously needed Japanese vehicles to restock their depleted inventories.<\/p>\n

Toyota and Honda took different tacks for the fourth quarter. Toyota said it will spend $1 billion in advertising to move the retail market. Honda, always more cautious in difficult times, said it would spend nothing during the same period. Honda added that it will keep dealer inventories at a 30-day supply of unsold vehicles, half the inventory considered normal.<\/i><\/p><\/blockquote>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6,21,39,33,35,9,17],"tags":[],"_links":{"self":[{"href":"http:\/\/www.zmetro.com\/index.php?rest_route=\/wp\/v2\/posts\/3572"}],"collection":[{"href":"http:\/\/www.zmetro.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.zmetro.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.zmetro.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"http:\/\/www.zmetro.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=3572"}],"version-history":[{"count":0,"href":"http:\/\/www.zmetro.com\/index.php?rest_route=\/wp\/v2\/posts\/3572\/revisions"}],"wp:attachment":[{"href":"http:\/\/www.zmetro.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=3572"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.zmetro.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=3572"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.zmetro.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=3572"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}