May 12, 2009
– Comments (2)
He's been spot on for years.
However, a lack of oversight of investment banks, hedge funds, monoline insurers, SIVs, etc... did in fact cause this crisis. Without the insane securitization of bad debt, the bad debt would have stopped being issued.
He makes a good point about Social Security. He says that it will start running deficit in 2016, forcing the govenrment to issue more bonds to cover it, The goods news is just keeps on coming, I guess.
There is already talk about Freddy and Fannie, how expensive they are and that the government might have to unwind them to reduce the deficit. Imagine, what wil happen with their 4% mortgages portolio if inflation starts? We probably only have to wait a year.
BATS data provided in real-time. NYSE, NASDAQ and NYSEMKT data delayed 15 minutes.