Bill Gross stated that the Fed's reserve policy just ain't what it used to be: http://news.moneycentral.msn.com/provider/providerarticle.aspx?feed=OBR&Date=20071001&ID=7559283 He said that there there are instruments which bypass the Fed's control. (See below.) What is he talking about? What are "CDO's, CLOs, ABCP, CPDOs, SIVs", etc?? And are these a help or a threat? ""But financial innovation has done an end run around the banks," Gross said. "Derivatives and structures with three- and four-letter abbreviations -- CDOs, CLOs, ABCP, CPDOs, SIVs (the world awaits investment banking's next creation; perhaps IOU?) -- can now take a 'depositor's' dollar and multiply it 10 or 20 times.""