Tuesday, January 12, 2010

Bernanke's Fed Balance Sheet - a new Super Fannie

Yes and what, when and how will the magician's at the Fed shrink the $2.2T balance sheet?

Note - up until Fall 2008 the monetary base NEVER exceeded $1 T.

Perhaps Bernanke's friends at the FASB / SEC will introduce new, fresh, kinder and gentler accounting treatment for the supposed AAA rated securities now owned by the US taxpayer?

Or perhaps there will be a new conduit for the Fed to stash same.

In the meantime, real unemployment in the US stands over 17% (that's over 1 out of 6 job seekers) not counting the soul-crushing endured by the "indentured class" sticking around only/primarily for the weekly scrip.

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