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Pastimes : The Naked Truth - Big Kahuna a Myth

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To: Terry Whitman who wrote (27406)3/24/1999 11:43:00 AM
From: C Hudson  Read Replies (1) of 86076
 
Terry, That is a facinating point that I have read before, possibly even by you. As a novice, may I ask a question? If they know that the direction of the market can be "manipulated" by injecting reserves, then couldn't they always offset a potential BK? In other words, what happens in the long run if they keep injecting reserves? Inflation is the answer I guess, but I'm still not sure what would force them to STOP injecting reserves.(or the money fountain as you call it) Thanks in advance for your reply.
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