The Winding Down Of Fannie And Freddie? - Doug Noland

``I have posited that today's Bubble is the latest in a series of Fed-accommodated bouts of Credit and speculative excess.   And as each successive Bubble grows larger and more systemic, the effects actually become less conspicuous.  The technology Bubble was rather obvious, although the greatest associated excesses were more generally contained (i.e. Internet/technology stocks, telecom debt, California incomes and real estate).   The mortgage finance Bubble was much less conspicuous until the arrival of the more egregious late-cycle price and construction excesses.  Few appreciated how Trillions of new mortgage debt were inflating incomes, spending, and corporate profits, while covertly distorting the economic structure.  Today, it seems that virtually no one recognizes how Government Finance Bubble excesses inflate incomes, spending, profits, state & local government receipts, and equities and bond prices.   ''