Scary link of the day

This one comes to us via Jim Hoft: The proprietor of the East Coast Economics, a self-confessed Harvard educated finance geek interested in macro perspectives and US monetary policy, is doing a study on what he terms ‘the Treasury bubble’. In the process the dear fellow is becoming increasingly scared.

Check out the following which shows the $$$ amount borrowed by US banks from the Fed through Dec 2007; the spike marks the Savings & Loan Crisis at the end of the 1980s with borrowing maxing out at $8b.

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Now take a look at the following chart. It is the same graph as above, but updated through the beginning of November ‘08.

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This might be less scary if the Fed wasn’t creating money out of thin air and at the same time accepting assets of questionable – and deliberately undisclosed – quality as collateral from banks.

On Gateway Pundit, there’s an additional chart, showing America’s “adjusted monetary base,” a measure of the money supply, from the end of the First World War to the present.

Asks mr. Hoft: “Could this thriller possibly have a happy ending?” One is terrified of what an honest answer would be…

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One Response to Scary link of the day

  1. richrd0001 says:

    We don't need to worry about this.  We are special.  Even gravity is different for us over here.

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