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Non-Tech : Derivatives: Darth Vader's Revenge

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To: Henry Volquardsen who wrote (854)3/26/1999 9:28:00 AM
From: Freedom Fighter  Read Replies (1) of 2794
 
Henry,

>>I would be interested in any specific numbers you might have.

I'm mostly a bottom up investor so I don't have the info handy. It's available from the Fed. You can find the link at my web page in the economics section (Flow of Funds).

I was referring to the credit numbers that are part of the Flow of Funds reports that come out quarterly. They are broken out between financial and non-financial. Non-financial credit growth was not particularly alarming mostly because the Govt. position has been improving and offsetting business and personal. (although I think business recently started to accelerate.) In general it was in line with GDP growth give or take. On the other hand the financial side was very rapid.

The only thing I could make of it was that it seemed to be related to the securitization of mortgages and all sorts of other receivables. I do not have a clear enough understanding of the process to determine whether this is dangerous or not. But I haven't seen a explanation that put me at ease either. Balance sheets of Fannie and Freddie have and other pseudo govt agencies have been exploding.

Wayne
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