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MOSLER'S LAW: There is no financial crisis so deep that a sufficiently large tax cut or spending increase cannot deal with it.


Posted by WARREN MOSLER on August 26th, 2009

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This doesn’t look good:

This does not look good

  • US RevPAR declined 16.7% last week versus a year ago, the largest decline since early July
  • Occupancy fell 7.2% to 60.4% and average room rates fell 10.2% to $95.70
  • Higher quality and urban segments continue to lead the decline


3 Responses to “lodging”

  1. Captain CraZ Says:

    LOL! This doesn’t look good? Whoa Nelly! Hold up! What about all this automatic stabilizer stuff you been preaching that saved the day, and how things had already bottomed and now the stimulus was finally going to kick in! Good lord make up your mind! Maybe some folks are so concentrated on so few pieces of data and statistics they get blindsided when it starts going in an unexpected direction, what did foreigner sing – you got tunnel vision!


  2. Warren Mosler Says:

    The automatic stabilizers did turn the tide, and the deficit spending helped some as well.

    But it looks to me like starting in the third quarter there was some kind of ‘shock’ that suddenly reduced demand.

    Might have been a policy reversal in China, low US interest rates adding more drag, small banks cutting local lending due to altered capital regs as suddenly happened with my very small bank, etc.

    External shocks can undermine any economy. Yes, they can be easily addressed by policy, but that requires leaders who understand the monetary system


  3. Dave Begotka Says:

    “But it looks to me like starting in the third quarter there was some kind of ’shock’ that suddenly reduced demand.”

    Unemployment running out for millions?


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