"Skim milk masquerades as cream," warned Gilbert and Sullivan over a century ago, and sure enough, today's subprimes, packaged into financial conduits with monikers such as SIVs and CDOs, pretended to be AAA-rated cubes of butter.SHOCK! GASP! HORROR!!!!
It is. What we are witnessing is essentially the breakdown of our modern-day banking system, a complex of leveraged lending so hard to understand that Federal Reserve chairman Ben Bernanke required a face-to-face refresher course from hedge fund managers in mid-August.
My Pimco colleague Paul McCulley has labeled it the "shadow banking system" because it has lain hidden for years, untouched by regulation, yet free to magically and mystically create and then package subprime loans into a host of three-letter conduits that only Wall Street wizards could explain.
[ cf Beware our shadow banking system
We have a secret banking system built on derivatives and untouched by regulation, says Pimco's Bill Gross. Here's how to protect your pocketbook. ]
How can this Pimco guy doubt the divine will and the Majikal and Mystical Imaginary Foote Of The All Knowing and All See Free Market that won the cold war!!!!
Clearly this sort of radical left wing stab our troops in the back approach can only be caused by the Gay HomoZeXual Konspirakii that is trying to destroy our white christian america with their doubting thomas approach to the moral purity of the purity of essence that emmanates from the divine will!!!!
Clearly the economy is as Jesus made it when the world was formed!!!!
Anything less and the Darwinianists are in bed with global terrorism!!!
Clearly one more reason for all TRUE BELIEVERS to vote BushCheney2008 to stop these evil doers and their evil doubts about the true nature of truthineff!!!!