Zeev's Turnips Patch-No Politics (ZEEV)

[sarai]

The Credit Bubble Bulletin - by Doug Noland

The Trials and Tribulations of Speculative Finance

http://www.safehaven.com/Credit/Credit092702PF.htm

.."Very regrettably, we are reading the reiteration of the Greenspan Doctrine: Respond to bouts of rising systemic stress (“outsized implicit compensation for risk”) by fostering greater “finance” (Credit excess). I doubt history provides a more ironclad case against discretionary monetary management. For too long, the day of reckoning for past Credit and speculative excess has been postponed by nurturing only greater financial and economic imbalances. How the Fed has grossly mismanaged this unfolding fiasco goes directly back to historical revisionism of the overriding causes of the Great Depression. We have never doubted that the answer to financial and economic ills would not be found with more Credit. We are now witnessing why"...