Banks gambling against you with your money.

The triple-thick milkshake of socialism.

What’s going on is really simple. We’re having a run on the Shadow Banking System and the only question is how intensely it will self-feed as its assets and liabilities are put back onto the balance sheet of the conventional banking system.

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…bottom line, you had the Fed step up and provide its public good to the Shadow Banking System. You had the FDIC step up and do the same thing with its public good. And as Paul Volcker was noting this afternoon, you had the Treasury step up and provide a similar public good for the money market mutual funds, using the Foreign Exchange Stabilization Fund. It was a triple-thick milk shake of socialism. And it was good.

Glad you liked it.  Now, please suck on this.

3 comments

  1. within hours of your bail-out.  I feel nothing for them but “baseball bats.”

  2. Ran across this. Read whole article, good stuff.

    http://dharmajoint.blogspot.co

    Future historians may well find post-modern man’s faith in the power of money as perplexing as Cortes and his men found the faith of MesoAmerica. It is, I believe this curious faith in money’s power that allowed finance to become as protected a practice as any in Christianity. How else could three men who kept markets functioning be proclaimed as “saving the world”? Why else, but for this faith, would politics allow their preeminent position to be usurped by banking?  

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