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

To: mishedlo who wrote (102069)	9/16/2009 7:43:11 PM
From: SouthFloridaGuy	3 Recommendations Respond to of 116555

Mish, your response was hedged too. Look, I respect the work you do and have done and I agree with you on many points. But I think you are underestimating the bazookas that Bernanke took out in Q1. The Fed's QE in one quarter was larger than Japan did in 7 years. I don't think you are appreciating that the banks are in SIGNIFICANTLY good shape now because many of the assets that are marked on the books can easily appreciate in this regime. If anything, the financial sector is the strongest sector in the economy right now. Banks are over-capitalized, especially ex-post the Stress Test which was using assumptions from Japan which now look to have not transpired.