Noland:

"At this “terminal phase” of boom-time excess, the continued availability of cheap finance will innately attract boundless ideas for how to procure it and create wealth from it.

...Ultra-loose Financial Conditions are spurring the hedge fund, proprietary trading, M&A, LBO, derivatives and stock repurchase booms that play a critical role in handing the asset inflation baton effortlessly from U.S. housing to global debt and equities markets.

...“Financial Conditions” are today largely dictated by the ballooning U.S. Financial Sphere (including foreign holders of U.S. financial claims), a process chiefly governed by the unconstrained multiplication and leveraging of U.S. marketable securities and non-traditional Credit instruments.

...Instead of dollar weakness in any way impinging demand for U.S. securities, the unprecedented U.S. Credit boom was “monetized” by the ballooning holdings of foreign central banks. The U.S. imported incredible amounts of goods and exported its Credit Bubble to the world."