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Doug Noland rips into the latest Z1 report like a pitbull into a raw steak – Spock – Bears Chat

As found here:


Liquidity moves markets!

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…credit analyst Doug Noland tears into the latest Federal Reserve Z1 “Financial Accounts” report, and reveals the scam that is our Ponzi Monetary System.

I won’t spoil the surprise for those willing to read Doug’s missive, but I will make one observation:

Back in 2007, when things were getting crazy in the McMansion bubble, I stated the following:

1. The Fed would wind up monetizing MBS.

2. Uncle Thug would simply nationalize Fannie, Freddie and the FHLBs when–not if–these GSEs failed.

3. Uncle would create some form or another of “RTC II” (similar to RTC I, spun up in the 1990s to deal off dead real estate).

Well, all three predictions came to pass (with predictions number 2 and 3 above being combined by Uncle Thug, as he first nationalized the GSEs, then used these zombies as a de facto RTC II), and–as Doug Notes in his “Credit Bubble Bulletin”–these Frankenstein freaks Fannie/Freddie/FHLBs now hold and/or control SEVEN TRILLION FIATSCOS of McMortgages.

(Spock Conclusion): It’s well worth the time to peruse Doug’s screed. And, as I have also predicted, Uncle Thug and the Fed have picked up the slack (to the tune of well over five trillion fiatscos) since “The Great Disintegration” began in 2008.

Now the question going forward is this: How long can the AlphaPigs keep running up debt and monetizing trash before THEY run out of credit and credibility?

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