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Strategies & Market Trends : The Millennium Crash

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To: MythMan who wrote (4761)12/14/1999 2:56:00 PM
From: Arik T.G.  Read Replies (1) of 5676
 
They've been preparing for big cash withdrawals of the last minute. Fed also printed paper money twice then usual.
Financial systems are still based on the (cash) deposits of households. When the cash base is down, banks can either call for loans or increase their leverage. There are rules against too big a leverage so anticipating only a temporary reduction of the cash basis in the banks, the Fed bends around the rules a little to give banks breathing room.

ATG
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