1. Coin in the Fuse Box Doug Noland David W. Tice & Associates, Inc. The Credit Bubble and its Aftermath Back to Bear Library

2. The Credit Bubble and its Aftermath New York, September 1999 Total Debt Outstanding

3. The Credit Bubble and its Aftermath New York, September 1999 Financial Sector Debt Outstanding

4. The Credit Bubble and its Aftermath New York, September 1999 The Persistent Financial Crisis 1987 Stock Market Crash 1990-92 Major Financial Crisis –Impaired U.S. Financial System Bank Failures Junk Bonds S&L Debacle –Piercing of the Japanese Bubble 1994 Unwind of the U.S. Carry Trade 1994-95 Mexican collapse & Orange County bankruptcy 1997 Thailand, Indonesia, Korea & SE Asia 1998 Russia, LTCM & leveraged speculating community 1999 Brazil, Argentina, Central America, US swaps market

5. The Credit Bubble and its Aftermath New York, September 1999 The Early 90’s - Federal Reserve “Lets its Guard Down” Created major Moral Hazard for bankers and Wall Street Allowed Wall Street to “Harvest Assets” Incited proliferation of leveraged speculation and derivatives Incited speculation in emerging market debt Incited Wall Street-inspired non-bank credit creators –Proliferation of non-bank finance companies –Incredible growth of asset-backed securities market

6. The Credit Bubble and its Aftermath New York, September 1999 U.S. Bank Interest Rate Derivatives

7. The Credit Bubble and its Aftermath New York, September 1999 Total Fannie & Freddie Assets

8. The Credit Bubble and its Aftermath New York, September 1999 Money Funds vs. Total Fannie & Freddie Assets Fannie & Freddie Assets Money Funds

9. The Credit Bubble and its Aftermath New York, September 1999 Financial Sector Borrowings

10. The Credit Bubble and its Aftermath New York, September 1999 Household Mortgage Debt

11. The Credit Bubble and its Aftermath New York, September 1999 Household Borrowings

12. The Credit Bubble and its Aftermath New York, September 1999 Corporate - Financial Sector Bond Issuance Back to Bear Library