Federal Reserve Rolls the Dice
Posted on July 3, 2009
Filed Under depression |
When Lehman Brothers collapsed, the markets froze. The Federal Reserve responded by doubling the money supply. A few months later, the money was gradually spent buying the toxic assets. It may take ten years to sell that toxic paper, and whether we then have inflation or depression will depend on the price they bring. The Chinese are financing this ten-year gamble with two-year loans.
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Federal Reserve Rolls the Dice
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