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Pastimes : Clown-Free Zone... sorry, no clowns allowed

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To: AllansAlias who wrote (42370)11/30/2000 11:09:00 AM
From: pater tenebrarum  Read Replies (2) of 436258
 
yep...i think hoping for a Fed rescue is not feasible at this stage. they're already doing what they can, pumping in liquidity through the back door. but it seems the collapsing credit bubble (junk yield spreads are hitting fresh highs)has become impervious to their attentions. it could be that the limit of the credit expansion has finally been reached. btw, i think if they cut NOW, the result will be a mind-boggling acceleration in inflation.it's not for nothing that they still worry about inflation...like you say, rock/hard place situation.
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