tag:blogger.com,1999:blog-12897315.post4025509985696837792..comments2024-03-28T09:54:55.115-05:00Comments on Dad29: Bernanke's Really BIG BetDad29http://www.blogger.com/profile/08554276286736923821noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-12897315.post-89029057978764077702009-03-19T23:07:00.000-05:002009-03-19T23:07:00.000-05:00Finally a source, with great charts, for the motiv...Finally a source, with great charts, for the motivated reader: http://www.itulip.com/forums/showthread.php?p=83348#post83348<BR/><BR/>Much attention is paid to the health of US banks, but a more pressing problem as the Flow of Funds reveals is that the magic securitized debt machine broke in the final quarters of 2008 that for decades fulfilled the endless demand for credit by households and businesses. Now that unemployment is rising, demand for credit is falling, and with the securitized debt machine broken, the supply of private credit has dried up, too. Where does that leave us?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-12897315.post-10405029589181805012009-03-19T22:51:00.000-05:002009-03-19T22:51:00.000-05:00More follow up reading: https://self-evident.org/?...More follow up reading: https://self-evident.org/?p=501<BR/><BR/>Here is the thing. They have never done anything remotely like this before. Nobody has, at least not on this scale. Will it work? Frankly, I have no idea. My point is that neither does anybody else, including the policy makers, and this alone is reason to be worried.<BR/><BR/>My fear is that this approach will sacrifice the real economy in order to prop up fake asset values, that the best case outcome is now 5-10 years of economic stagnation, and the worst case is an inflationary depression. But anybody who says they know for sure is lying. We have just entered not so much a new chapter as a new book.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-12897315.post-77464482017789211792009-03-19T22:30:00.000-05:002009-03-19T22:30:00.000-05:00Follow up reading: http://www.qando.net/?p=1588“[W...Follow up reading: http://www.qando.net/?p=1588<BR/><BR/>“[W]e simply do not see a viable exit strategy to all the money that is being thrown at the system” because there is no viable exit strategy. We are either going to have serious inflation, or the Fed will have to tighten up so severely at some point in the near future that it will kill economic growth anyway.Anonymousnoreply@blogger.com