We have fixed nothing in the last two years. We have not forced bad debt to default yet worse, despite the incessant pumping and attempted "forcing" of credit into the system via government borrowing the pump has now officially failed, as the new Z1 data shows.Note that despite all the Federal Deficit spending - $1.4 trillion last fiscal year (ending in September) and $300 billion more in the last two months - approaching two trillion dollars - the total credit outstanding in the system - including the new Federal borrowing - went negative in the third quarter of this year.
The bottom line:
Your attempt to play "pump prime" over the last two years has FAILED.
The Fed is playing a game which it cannot win and which will result in a very costly conclusion.
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