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Adrian Lane

Most people don't even know what derivative banking is ... they don't teach it in school, and I never saw it in any macro-econ course I took in college. Basically it is lending money they don't have. But it has gotten so out of hand that the percentage of real money in savings does not represent 1/1000th of the money loaned. There is no money, only debt. So when you fail to underwrite loans with rigor and common sense, your loans fail, and there is no balance in the system to offset the collapse. When new CEO of Freddie-Mac (Moffett) up and quit this morning, it is a pretty telling statement that he does not think he can fix the problems.

Thanks for posting this.


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