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Strategies & Market Trends : Currencies and the Global Capital Markets

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To: Enigma who wrote (2237)11/12/1999 8:47:00 AM
From: Enigma  Read Replies (1) of 3536
 
Henry - what I'm struggling with here - specifically as it impacts mutual funds - is what exactly is meant by 'injecting liquidity into the system' - a phrase which is often used. Maybe the first effect is on margin calls at the retail level, but how, specifically? And, going back to my posting, I'm not sure how managers would pay back loans if they use them to 'buy the hell out of stocks'. I'm not talking about a correction here but a crash pure and simple - the market going down like a falling stone!

And, in spite of what you say, it does appear that many funds are fully invested (if 4.8% is the average) and must feel encouraged to be so because of the backing of the banks/Fed.
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