Great piece from Zerohedge:
As observant readers will recall, a week ago we pointed out a letter in which the New York Fed’s Steven Manzari instructed AIG to stand down on all discussions with counterparties on “tearing up/unwinding CDS trades on the CDO portfolio.” At the time we focused on the word “stand down” as an [...]
The root of the current financial crisis was an artificially induced boom in the real economy, and asset-price markets that subsequently turned to bust. The bust led to a reduction in the values of many assets owned by banks.
Thus, the banking sector found itself crippled by insolvency problems, consequently causing liquidity problems. The readjustment of [...]
Too bad that our last Fed Chairman was a dissembling, blithering idiot, a standing joke in his private practice, who could not find the optimal monetary policy with both hands. But he was a masterful politician and bureacrat, surrounded by fellow sycophants, and did know how to serve the banking interests and make himself look [...]
Money and Markets:
While most pundits are still grasping at anecdotal “green shoots” to celebrate the beginning of a “recovery,” the hard data just released by the Federal Reserve reveals a continuing collapse of unprecedented dimensions.
It’s all in the Fed’s Flow of Funds Report for the first quarter of 2009, which I’ve posted on our website [...]
Ai note: so for the hopes for employment recovery…and this is from FED…
SF Fed
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