Whoops! : May 2008 : Ambrose Evans-Pritchard : Business : Telegraph Blogs: "Posted by Ambrose Evans-Pritchard on 29 May 2008 at 18:42
Tags: Economy, Debt, borrowing, Alan Greenspan, Federal Reserve
This is helicopter policy already. It is what happens when the Fed manouvres itself into such a dire position that it has to invoke the "unusual and exigent circumstances" clause of the Federal Reserve Act (Article 13, 3).
Sadly, we must all put a clothes peg over our nose and accept this debasement. The alternative outcome for free society would be worse.
Greenspan has a lot to answer for..."
Norton's comment: Non-bank borrowing recently open to investment banks etc., allows trading mortgage backed securities (worth junk) at face value for treasury securities...so called temporarily; however, now there is talk of making this mechanism and new regulations long term or permanent. Most banks are still carrying these securities at full value on their books which could ultimately be worth pennies on the dollar. The ponzi scheme is SLOWLY being revealed. We have a long way to go World wide. We are on the edge of a sismic financial unwraveling. Get prepared for the world after oil and after a gutting of the financial systems as billions of dollars of assets vanish. Ultimately the public will pay and it will be the beginning of the Next American Revolution.
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