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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Mike M2 who wrote (59237)	5/13/1999 12:58:00 PM
From: Freedom Fighter	Read Replies (1) \| Respond to of 132070

Mike, I understand the bank credit process and its relationship to the money supply. That's pretty much straight forward. It's the non-bank credit process that remains sketchy to me. It seems to me that there are few in any idle cash balances except currency. Everything is parked somewhere. So when the agencies (FNMA, FHLMC etc..) go to capital markets to raise cash so that they can buy mortgages, that money has to be coming from some other asset unless it is indirectly coming from banks. ?????? I can't think of any other idle cash that can create net new credit. Wayne