Sentences to fear

Covered bonds issued by "too big to fail" banks are basically equivalent to mortgage backed securities guaranteed by Fannie and Freddie.

Here is much more, though I cannot see that the credit of the United States government is in danger.  There is a) the printing press, and b) our location on the left side of the Laffer Curve.  The point remains that additional debt for the major banks, while arguably necessary, weakens the off-balance sheet position of our government.


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