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AMZN 232.37-0.9%Dec 3 3:59 PM EST

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To: Skeeter Bug who wrote (121340)3/22/2001 10:32:39 PM
From: Victor Lazlo  Read Replies (1) of 164684
 
If the Fed is buying US Treas bonds heavily right now, that would increase liquidity, no? Is this not the second most impacting way that they incrase liquidity?

But nobody pays attetnion to that, so AG still gets criticized. I do not think that a Fed cut of even 200 basis points would help much at this point. The US economy is screeching to a halt, and this is bringing the same to Europe and Latin America, IMO.

There just is not enough legit borrowing capacity left out there to make a difference. Personal and coprorate debt is already huge by histroical comparisons. At the same time, US banks started to tighten up lending standards as early as last Spring- default risk was growing and they saw it.

"Want a loan at the new low rate compliments of the Fed? Sorry, you do not qualify! "

Victor
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