New Fed Z1: Market Move Is NOT Sustainable

Market Ticker - Karl Denninger View original article March 11, 2010 09:54 AM Sorry guys and dolls. The new Fed Z1 is out, and it makes clear exactly what's going on when it comes to the broader economy. This isn't a market timing call, but it is an inevitable recognition of reality call - and it will come. Note that the Federal (and to a lesser extent the State) governments have replaced credit expansion in the broader economy.  As of the 4th Quarter of 2009 there is no evidence of recovery in the broader economy's credit growth; to the contrary, it continues to shrink. Here's some more detailed color on this: Find the rising economic activity, as measured by the debt load in the system.  Hmmm... let's see, a little bit in State, down everywhere else, except..... The Federal Government! Folks, there's no recovery.  Not through Q4 2009 anyway.  The Fed Z1 does not lie and the destruction in the financial space continues at breakneck speed, despite the ...