The Fed and Deleveraging, revisited
December 17, 2008 at 07:58 AM EST
[Skip to the end] Deleveraging involves nothing more than ‘reintermediation’ back to the banking system (as described in more detail previous posts). The government has failed to facilitate this transition back to a banking model to allow it transpire in an orderly fashion. All that needed to happen was for credit spreads to go to levels that represented [...]