Scary updated Fed Charts

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Submitted by Running Bear on May 13, 2008 - 9:07am

These are for those that think we are hitting the bottom of this crisis. The Fed stopped updating these charts for awhile.....they have now been updated.

http://research.stlouisfed.org/fred2/ser...

http://research.stlouisfed.org/fred2/ser...

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Both of those charts are
Submitted by jpinpb on May 13, 2008 - 9:19am.

Both of those charts are just unbelievable! Did you happen to listen to This American Life? Explains pretty well the pool of money.

http://www.thislife.org/Radio_Episode.as...

"Did you happen to listen to
Submitted by LA_Renter on May 13, 2008 - 9:38am.

"Did you happen to listen to This American Life?"

IMO that was one of the best reports I have heard on this whole debacle. It was very easy to understand and entertaining. Much of the interview did remind me of the movie "The Boiler Room". We have a ways to go before this thing clears out.

The explination given in
Submitted by peterb on May 13, 2008 - 9:53am.

The explination given in This American Life is almost exactly what a friend in the mortgage business told me a few years ago when I asked him why the mortgage business had gotten to loose and easy. He said,"It's really simple, there's a ton of money chasing this market."

Those graphs sure look
Submitted by bsrsharma on May 13, 2008 - 10:45am.

Those graphs sure look scary; but if you see the scale, it has an amplitude of only +50 to -100 Billion $. Large though that is, it is still tiny compared to the size of US Economy (15 Trillion $). Trusting the data to be true, it looks as though much of US economy is like a house built of toothpicks. A trillion $ banking system collapse can easily push us over to Brazil/Argentina type of meltdown.

For sake of comparison, the current Iraq War Bill requested by President is $108 Billion. Of course, it will be entirely borrowed as Federal budget is already in deficit even before that. The Stimulus Bill was about $150 Billion. Also entirely borrowed! This year's Federal deficit will probably set a record above $600 Billion.

I listened to that radio
Submitted by CONCHO on May 13, 2008 - 11:00am.

I listened to that radio program -- completely sickening and pathetic, especially the story of the new college grad making $1M a year moving toxic doo-doo mortgages between poor borrowers and the idiotic MBS/CDO markets. I guess that's just what happens when a country stops making things.

As for budget deficits, Cheney says that they don't matter, so don't worry about it, everything will be allright.