Financial Sector Liabilities, 2006 thru 2007 vs Increase in Federal $NFA Injections over the same time period

Data on Financial Business Liabilities from the first of 2006 thru the end of 2007:

2006-01-01 13282.61
2006-04-01 13653.19
2006-07-01 13900.80
2006-10-01 14260.51
2007-01-01 14783.11
2007-04-01 15168.47
2007-07-01 15808.05
2007-10-01 16204.48

Data here.  Looks like a 24 month build of $3T at a time when the Fed had the policy rate above 5%.

That's a lot of nut. (And btw doesn't include non-financial business...)

Looking at Federal Net Spending for 2005 here, we can compute that Net Spending ended up at  $2.770T    for FY 2005, while Net Spending for FY 2007 ended up at $3.081T .

So that represents an increase in leading $NFA flows of $311B/year during a time when just the non-govt financial sector was issuing an additional $3T of liabilities in an environment with a policy rate north of 5%.

This doesn't look like the government increased the rate of $NFA injection in an amount sufficient to provision the non-government with enough additional $NFA for the net liability cohort in the non-government to be able to successfully service the additional $3T+ of interest bearing liabilities the non-government sector was allowed to issue during this same time; leading to many failures of the debt securities issued to establish the $3T+ of new liabilities... fraud or no fraud.