Friday, November 28, 2008

Fiscal Bubblicious

'Now we want to take debt off the balance sheet by putting the full faith and credit behind it, i.e., synthethic Treasuries. The last bubble is the FISCALBUBBLE.
When it pops so do we, for it is our balance sheet that will 'blow up'. - AM

A nugget from Dr. Doom&Gloom [his comments]

Alan Greenspan, during a question answer season in London,November 2007 midnight California time, in which he said, "During early 1990s the money supply numbers stopped working [money supply was growing but banks were reluctant to lend]. We [Fed] put buckets of money out there [in the banks, similar to what the Fed is trying to do now] and it didn't work. It was only after Wall Street came up with more [or newer] CDO products ["innovations" in securitization of debt] and took debt off the banks' balance sheets that banks started to lend again and the economy began to respond."

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