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Strategies & Market Trends : Classic TA Workplace

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To: 4rthofjuly007 who wrote (19634)	11/6/2001 3:06:56 PM
From: patron_anejo_por_favor	Read Replies (2) of 209892

<<But how does it get into the greater economy? Loans?>> Loans, lines of credit, increased issuance of CP rates, rollovers of existing short term loans where a lender may have considered calling it in on the margin. WTF, a big chunk of it'll probably end up blowing the Argentinian debt bubble up bigger. Think expansion of credit and increased velocity of money (theoretically, anyway). In reality, a great deal is getting loaned to hedgers (so it ends up in Broke-Aid and JNPR and CIEN and all our favorite trash stox) and institutions to buy mortgages and longer term debt at much higher rates, as well as to keep the ABS scams running. Ultimately these $$ appear as "institutional money market fund credits" (a proxy for financial institution debt) which is why MZM is growing at such a prodigious pace. Credit quality be damned, full speed ahead! The above is greatly simplified, but you get the picture.

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