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To: Giordano Bruno who wrote (392563)8/13/2009 10:18:12 AM
From: Real Man  Read Replies (1) | Respond to of 436258
 
Much less than that, but substantial nevertheless, 1.75 Trillion,
and that's just the printing. If the system was working,
that would produce 35 Trillion in new credit, for a leverage
factor of 20. But it ain't. For example, Just 8 billion coupon
pass caused a 1000 point DOW rally in 2006 or so.

Derivatives just put cash from one pocket to another, for now
from the government straight into GS's pocket. It doesn't
evaporate. Stocks and especially houses evaporated + jobs,
that's real.