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Strategies & Market Trends : Classic TA Workplace

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To: JRI who wrote (20604)	11/11/2001 4:53:03 PM
From: John Madarasz	Read Replies (1) of 209892

interesting little blurb here from hahn... The money supply report was released by the Federal Reserve on Thursday night. The most recent weekly numbers did not show a big change at +4.8%. But, there was a shocker of a revision for the week ending September 17. Compared to all other releases, this one showed an additional $70 billion of added money supply to M3 on top of previously reported money supply increases. This procrastinated confession is very significant. It brings the 911 capital infusion (creation of new money) to nearly $200 billion dollars in the week following the terrorist attack. When books are written by historians about this time period, there may be some recognition of what is easily the biggest bailout of an industry (the mutual fund industry) in the history of the country (and the world). To put this in perspective, the 1980 Chrysler loan guarantee was only $1.2 billion (which was paid back in full). The Hunt Brothers were bailed out from their failed effort to corner the silver market in 1980 for a measly $1 billion. Continental Illinois was bailed out in 1984 for $4.5 billion. Long term capital management (LTCM) was bailed out by participating financial firms for $3.5 billion in 1998. The previous bailouts are nickel and dime stuff compared to the bailout emanating from the 911 tragedy. The $200 billion in new cash that was printed to prevent a total market meltdown and save the status quo on Wall Street will never be officially recognized as a bailout, but that's what it was, and it really happened. The inflationary implications in the long run are scary.

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