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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: shades who wrote (83703)	7/17/2007 2:22:51 PM
From: pogohere	Read Replies (3) \| Respond to of 110194

hoover printed to the high heavens Interesting--do you have details on this? It was my understanding that the monetarists criticized the Fed for failing to provide liquidity. Thanks

To: shades who wrote (83703)	7/17/2007 2:39:40 PM
From: russwinter	Read Replies (2) \| Respond to of 110194

What you describe is not exactly what I'm seeing. I see Wildcat Finance types and Japanese housewives at trading terminals creating money (liabilities) to heaven, not so much central banks (). Yes, it has the same effect, but there is a distinction, wildcat finance can evaporate much easier. () US Fed securities held now 790.6, one year ago; 766.4 +3.15% federalreserve.gov They've been negligent about runaway dangerous credit creation by wildcat finance and Pig Men, but have not been "printing money" or monetizing.

To: shades who wrote (83703)	7/17/2007 6:48:24 PM
From: Real Man	Respond to of 110194

A few things about reflation after so many years 1) total debt/GDP ratio soared 2) the trade deficit soared despite the dollar decline. It appears to me so far Fed's reflation has failed to achieve its main objectives - getting the debt level down + curing the trade deficit problem. We are moving into a debt crisis of a kind, with a dollar meltdown, IMHO. MBS meltdown could be the trigger (if foreigners refuse to accumulate and/or actually sell this garbage) The rest will depend on the Fed's action.