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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Perspective who wrote (97207)	12/12/2007 4:10:47 PM
From: patron_anejo_por_favor	Respond to of 306849

>>I remember now the term was that commonly led to bankruptcy: duration mismatch. Our banking system now has that in spades. Unless (until?) the Fed starts bailing them out, capital will continue to be destroyed. Crumbling balance sheets = reduced liquidity (negative growth, in Newspeak).<< I agree totally. My point about commodities is that the Fed won't be able to "steer" the liquidity to the intended sector. That was Minsky's point as well. In a credit crunch attempts at resolution by monetary intervention usually miss the intended target (and create scads of collateral damage in the process). Same as Soylent Greenspan's effort to reanimate the tech sector led to the Great Housing Bubble of 2003-'06. This money's gone to heaven. All that remains is the recognition of same by the entities who hold the dessicated corpses...