On Oct 1, 2008, at 12:49 PM, Dean Baker wrote:
Just to be clear, I DO Not see a financial collapse (whatever that means exactly). I see a possible, but not likely, scenario in which several of the major banks (perhaps most), must be taken over by the Fed
Having several to most major banks taken over by the Fed? How is that not a financial collapse, and how in any sense can the Fed handle that? Citigroup's assets alone are $2.1 trillion, and the Fed's were $919 billion at the end of 2007.
By financial collapse I mean an impairment of the credit system sufficient to lead to a serious contraction of credit - 20% or more, to pick a number out of the air. If several to most major banks had to be "taken over" by the Fed, that would certainly happen, and the ensuing panic would make the last few weeks look like Romper Room.
Doug _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
