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Pastimes : All Clowns Must Be Destroyed -- Ignore unavailable to you. Want to Upgrade?

To: re3 who wrote (37594)	6/2/2000 9:39:00 PM
From: patron_anejo_por_favor	Respond to of 42523

Doug Noland's column today (good stuff!): prudentbear.com "There is an additional factor that we believe played a key role during 1998's reliquefication: The GSEs were off the radar screen. Economist and analysts alike, with their focus on banks, were oblivious to these institution's enormous credit excesses. For reliquefication 2000, however, all discerning eyes will see the obvious excesses in bank credit (although the banks many off-balance sheet vehicles certainly lack transparency!). With this in mind, we just don't see how serious analysts will be anything but alarmed by recent bank credit developments. Certainly, we expect foreign investors will be monitoring developments closely, and we do not expect them to take comfort in what they see: runaway bank credit at the late stage of an historic financial and economic boom. And while the Wall Street spinmeisters will create the enticing illusion of a jumbo jet landing softly in a sea of marshmallows, it isn't going to happen. All the might of our powerful financial sector is working diligently to keep the U.S. supertanker bubble from sinking, but I am reminded of a quote that went something like this: Three hours after the Titanic collided with the iceberg partygoers are still merrily enjoying martinis at the bar. That's all well and good, but this ship won't make port." Have a good weekend!