The War To Save Credit
From Markmans latest... and we could not have said it better.
An excellent primer for quantitative easing; deleveraging (multiplier effect in reverse) and why bonds & the dollar will get destroyed...
The Bush administration shifted into "shock and awe" mode last week in its attack on the credit crisis...
Shoveling cash at undeserving banks is just what you would expect from bureaucrats who didn't have to earn that money in the first place -- and who will be out of office before the plan blows up.
it will likely take a lot more than near-zero interest rates and massive boosts in the monetary base to ward off the painful effects of global deleveraging and a prolonged recession.
About $7 trillion has been put at risk by a Federal Reserve team that has admitted it failed to understand the credit crisis for years...
has no direct expertise in lending money to anyone but the highest-quality banks and has no staff expertise in insurance,
credit unions, consumer lending or the other financial institutions that are standing in line for its new largesse.
Plus the Fed's computer models that suggest the dollar flood will work magic were built by the same type of folks whose financial models...
got investment banks into trouble in the first place -- and the money will have even less oversight by risk managers, if that's possible.
the strategy will unravel, led by a devastating downgrade of America's sovereign debt rating and a train wreck for the dollar.
The Nattering One muses... we have said this all along... after the collapse of stocks, commodities, real estate and the economy...
bonds and the dollar will be destroyed. Do not be fooled, this is by design.
An excellent primer for quantitative easing; deleveraging (multiplier effect in reverse) and why bonds & the dollar will get destroyed...
The Bush administration shifted into "shock and awe" mode last week in its attack on the credit crisis...
Shoveling cash at undeserving banks is just what you would expect from bureaucrats who didn't have to earn that money in the first place -- and who will be out of office before the plan blows up.
it will likely take a lot more than near-zero interest rates and massive boosts in the monetary base to ward off the painful effects of global deleveraging and a prolonged recession.
About $7 trillion has been put at risk by a Federal Reserve team that has admitted it failed to understand the credit crisis for years...
has no direct expertise in lending money to anyone but the highest-quality banks and has no staff expertise in insurance,
credit unions, consumer lending or the other financial institutions that are standing in line for its new largesse.
Plus the Fed's computer models that suggest the dollar flood will work magic were built by the same type of folks whose financial models...
got investment banks into trouble in the first place -- and the money will have even less oversight by risk managers, if that's possible.
the strategy will unravel, led by a devastating downgrade of America's sovereign debt rating and a train wreck for the dollar.
The Nattering One muses... we have said this all along... after the collapse of stocks, commodities, real estate and the economy...
bonds and the dollar will be destroyed. Do not be fooled, this is by design.
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