Doug Noland of Prudent Bear comments on the Fed’s quarterly release of the Flow of Funds (emphasis added by me):
“To summarize, there were no surprises in the Q2 2009 Flow of Funds. What I saw was confirmation of the Government Finance Bubble Thesis. “Uncle Sam Bets the House on Mortgages” was the headline for an insightful article in this morning’s Wall Street Journal (Peter Eavis). It would as well make a good title for recent Z.1 Flow of Funds reports. My bet is that this massive government intrusion into mortgage finance eventually backfires. It puts Washington on course for bankrupting the country, while doing little to direct financial and real resources in a manner to spur needed economic restructuring.”
His Friday post is always a must-read for me. Warning, his work contains a great deal of statistics and is primarily for econgeeks.
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