RSSCan the Fed Save the System? Odds are Against It
By Jim Welsh | November 24, 2008 | 2:15 PM | 0 Comments
As a reader of my greenfaucet commentaries, or if you have read my newsletter, "The Financial Commentator", you know that the breakdown in the securitization of mortgage, auto loan, and credit card lending has been the main reason I thought the Fed would not be able to contain the current crisis as they have other crisis'. This piece in today's Wall Street Journal ("The Fed Is Out of Ammunition", by Christopher Wood) also notes how important securitization has been to credit creation. The author also touches on the concept of velocity, which I have mentioned over the last year.
Most investment professionals have not understood how we got here, which means they still don't fully grasp how difficult the next 2 to 4 years will be for most Americans. This guy gets it.
To read Christopher Wood's excellent Wall Street Journal piece entitled "Is The Fed Is Out of Ammunition" Click here
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