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Also, in what sense are these liabilities "money"?

Migeru:

the cosmic scale - 150 trillion dollars - in which interest-bearing credit (aka money) was created
Consider the FDIC's Risk Management Manual of Examination Policies
Additionally, swaps, futures, forwards, and option contracts are derivative instruments whose notional values are carried off-balance sheet, but whose fair values are recorded on the balance sheet.
There is a whole host of "off-balance-sheet" items and not all of them represent actual value.

Most economists teach a theoretical framework that has been shown to be fundamentally useless. -- James K. Galbraith
by Carrie (migeru at eurotrib dot com) on Mon Mar 23rd, 2009 at 06:33:14 AM EST
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