Affecting the Economy: Liquid $2T, Big Numbers, Berkshire All is Well, More Inflation, Roubini Versus Rogers, UK QE, Diane Swonk on Consumer Spending

The Fed’s Nemesis: Exter’s $2 Quadrillion Of “Liquidity” – … When the system is broken, like it is now, the Fed and all Central Banks try to refill the pyramid from the bottom-up with every single dollar they print. … – Submitted by Tyler Durden – Zero Hedge

Here There Be Big Nymbers (Sic) – Submitted by Tyler Durden – … the market value of all OTC contracts, … increased by 66.5% over the same period, to $33,900,000,000,000.00. Like we said, big numbers – and this is just OTC. The real number includes regulated exchanges, and to estimate that, double the numbers above. In totality, the “sidebets” on everything from interest rates, to F/X to corporate default risk, amount to about $1.3-$1.4 quadrillion (that’s 15 zeroes before the decimal comma) in terms of uncollateralized liquidity (think inflation buffer): take all those zeroes away and the value of the dollar would go down by 1E10-15: … – Zero Hedge

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All is well – Berkshire Says ‘Credit Crisis Has Abated’ as Profit Triples – By Andrew Frye -  Berkshire Hathaway Inc. said “the credit crisis has abated,” bolstering the firm’s earnings potential after Chief Executive Officer Warren Buffett agreed to pay $26 billion and take on debt to fund his biggest takeover. – Bloomberg

Roubini Versus Rogers Is Right Debate for 2010: William Pesek – good infltation vs. deflation article – Bloomberg

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Fed Signals “All Systems Go” for More Inflation - … Why have I been saying you should forget the empty talk you’re hearing about tighter policy? Because action is what counts. And it is abundantly clear to me that the Fed won’t take action until it’s forced to by a dollar crash, a bond market collapse, or some combination of both.  Those events would be important signals that the market has lost confidence in the Fed’s ability to control inflation and in the U.S. government’s willingness to preserve the value of the dollar, necessitating a policy response. – Jutia Group

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UK’s quantitative easing keeps bond yields down but fails to stimulate lending – Guest Post by Oxford Analytica – Research Recap

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Diane Swonk’s November Themes on the Economy  – A Debit Card Christmas,  Special Holiday Edition – Mesirow Financial