Ask Michael Burke Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Ask Michael Burke

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: valueminded who wrote (51328)	3/11/1999 10:51:00 AM
From: Knighty Tin	Read Replies (1) of 132070

Chris, When the Fed buys coupons, it is effectively buying bonds and letting out cash, which is then reinvested. That increases money supply as they are taking a form of savings out of the market. One can add reserves to the banking system while still making it more difficult for the more speculative sectors to borrow. That, I believe, is what Earlie is talking about, though you will have to ask him. It is like what has happened at brokerage firms. Margin money is still readily availble, because reserves are there, but not for certain stocks, stealth tightening. MB

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next