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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: rudyt who wrote (76749)	3/24/2008 6:43:08 AM
From: SouthFloridaGuy	Respond to of 116555

I'm not Mish, but I'd say Mish is right. The Fed CAN of course do whatever it wants but not without affecting inflation, the dollar, etc. So far the Fed has been utilizing it's known balance sheet to facilitate liquidity. That is money that is known to exist. But of course this is about solvency not about the need for revolving debt. It's no different than homeowners who are underwater, it doesn't matter until you are forced to sell due to job loss, health, divorce, etc...then you are forced to mark to market. The moment the losses outgrow the Fed, then we have issues. We're at the 2/3 mark right now.