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LIBOR Shows Worst Is Yet to Come for Credit Markets

Good. Contract the prudential reserve euro-dollar market.

Ten Comments on the Fed

I'm an inveterate Fed watcher. I’ve never lost trading T-Bond futures (since July 79). M1, M2, & MZM started expanding after the 3/4 point drop in the FFR. M3 is mud pie. Merkel's M3 (bank credit proxy) is an excellent surrogate. Milton Friedman's "high powered money" (monetary base) has never been a "base" for the expansion of the money supply. Ben Shalom Bernanke is the coolest dude since William McChesney Martin, Jr. Bernanke is brilliant. The dollar (exchange value) is eternally doomed. For the yield curve & counter-party credit risks (Merkel’s the man). The TAF is the precursor of the Lombard Facility scheduled under the “Financial Services Regulatory Relief Act of 2006.”A reduction in bank capital is also stamped under this Act. There’s no scholar on the Great Depression. Unbeknownst to virtually everyone, it is mathematically impossible to miss economic forecasts.