Engineer, you’re mistaken if you think the fragments from imploding leveraged funds are less important than IEDs in “The Iraqi Oilcapades (Smart People on Sand!)”.

Like the newer IEDs found propped in the roadside rubble, the whole MBS market looks like a copper EFP aimed right at Mr/Mrs America’s tricked out, bought on HELOC-money Hummer. Bummer.

We’ve seen the central banks’ liquidity body armor in action the past few days but if you’re getting body armor hits then you’re too close to the fight, pardner, and you’re one lucky shot away from a body bag.

The other problem with being too close to the fight is air support is more difficult to direct. Sure, you can call in Helicopter Ben for a drop but some of your guys are going to get killed…

The bottom line is that while we may be using billions of OPM in Iraq and enslaving our kids, we don’t see the immediate effects. When the credit market and the housing market finally get marked back to rational levels we are going to see the effects first-hand and personally.