This is like rating dung piles.
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Puerto Rico is the US in miniature.
Puerto Rico is the bubble in the Caribbean that muni-bond holders are just now discovering in their portfolios.
The more I dug into the Treasury’s report the more I was persuaded that it was propaganda, pure and simple. It’s helpful to remember that the Treasury Department is staffed by Obama-ites, operating under orders from His Worshipfulness.
Has no one learned from the real estate collapse? Do they have to repeat the mistake? It appears so.
Another of the Fed’s unintended consequences is the freezing of the very credit markets they are trying to stimulate.
Stockman has a grasp of economic reality. Anderson has a grasp of Austrian economic theory. Together they have produced a simple yet unnerving view of the near future.
What can go wrong? The Fed and the FDIC and FHA and Fannie Mae are all there ready and willing to help. No problem. None that I can see.
When two smart fellas don’t know, and Bernanke doesn’t know, what will happen?
No doubt Maxine got an A in math. If she didn’t she should. At least under the new guidelines anyway.