[roccman]

http://market-ticker.denninger.net/

$this->bbcode_second_pass_quote('', 'T')his bet is more akin to "The Fed loses control entirely and Effective Fed Funds trades radically higher irrespective of what Bernanke does, because nobody trusts anyone anymore - not even overnight."

In other words, this bet is one that the credit markets will go supercritical.

[firestarter]

Thanks, roc.

I can't stand Denninger, and avoid him like the plague, but if he's correct here I'm heading for the hills.



ps, I have a Sun Trust bank informant (MBS off-loader to Wall Street) who tells me that the MBS market is worse than ever, and that he believes a credit event of uncommon proportions is literally around the corner.

I'm nervous!

[Cloud9]

Ah, the chickens may come home to roost after all.

[roccman]

$this->bbcode_second_pass_quote('Cloud9', 'A')h, the chickens may come home to roost after all.

[pup55]

Perhaps Bernanke will finally be forced into doing the right thing, which is to raise interest rates, and wring some of the flab out of the system.

I forget now who posted it in the economics forum, but several months ago this was suggested as the reason that Volcker had to increase the interest rates back in 1979-1980: The market got ahead of him and forced him to do the right thing.

The result was a hell of a recession, in the 1981-1983 time frame, 17% mortgage rates, and a lot of pain. The young whippersnappers on this forum were in diapers during this time frame.

I will have to dust off my disco ball, and see if my high-heeled shoes and leisure suits still fit.

Edit:

http://peakoil.com/fortopic26033-0.html

The potential winner is firestarter, who outlined this in January.