Klarman Clarity: “If The Government [Still] Can’t Allow Failure Then We Are Indeed Close To Collapse”
by Tyler Durden
ZeroHedge.com
07/11/2013
One of the most insightful comments explaining what happened last night, when Bernanke just killed all credibility that the economy may soon be able to stand up on its own two legs, comes from Seth Klarman who crushed the logic (or lack thereof) behind proclaiming any recovery in a world in which the only marginal factor preventing an all out collapse in the stock market and thus economy is, and continues, to be the Federal Reserve which has not only destroyed the market’s discounting function, but with every passing day is taking over both the entire US economy (the Fed’s balance sheet is now 25% of US GDP) and the US bond market (currently in possession of 30% of all 10 Year equivalents).
To wit:
If the economy is so fragile that the government cannot allow failure, then we are indeed close to collapse
The Rest…HERE
