Dry Oceanbed: Greenspan took $10 Trillion Dollars of LIQUIDITY out of the global economy and financial markets. Even the TAX BREAK of $1.3 Trillion over 10 years is only $130 Billion a year, A DROP IN THE BUCKET. Where will we get the LIQUIDITY when Federal Reserve Rates are above 2 year Treasuries, preventing OPEN CARRY of BANKS to borrow from the Federal Reserve and buy Treasuries and then use Treasuries as their required FDIC RESERVES and loosen up their CASH RESERVES so they can LOAN it out, and provide MULTIPLIER EFFECT CREATION OF LIQUIDITY in the economy, resusitating the economy from the death throes of the 2nd Greenspan induced recession? Maybe we won't, maybe the old man is so out of touch with reality that he wants his legacy to be a worldwide collapse and 2nd Great Depression, World War 3 and perhaps Armageddon. One must ask the Saudiis, if they are reading this, why does Greenspan hate the arab islamic OPEC nations so much? Will the OPEC nations prove their loyality and help Bush's son, George W, battle the failed monetary policies of Greenspan's Clintonesque Federal Reserve Board of Governors sitting at the FOMC? Will OPEC make the first move and increase oil production, thus lowering the PRICE OF THEIR CURRENCY, OIL, despite the obstinance of Greenspan not lowering the price of our currency, the US DOLLAR, by lowering FOMC interest rates to below OPEN CARRY. OPEC put their final decision on hold for one month, to see what Greenspan's FOMC will do at the end of this month. North Sea crude today is almost hitting $30 again. OIL should never be below $20 nor above $25 per barrel. Just as a high tide raises all boats, a low tide leaves everyone marooned on a dry oceanbed., we see that the Kraft spinoff took too much needed LIQUIDITY out of the market, these IPO committments tie up the LIQUIDITY for too long, as the brokerage houses are required to hold the stock under their underwriting committments. Oh well, its only money, let loose the dogs of war.
I am,
Truly your$,
-Crystal Ball |
