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Pastimes : The Naked Truth - Big Kahuna a Myth -- Ignore unavailable to you. Want to Upgrade?

To: pater tenebrarum who wrote (77007)	11/24/1999 2:24:00 PM
From: Jack of All Trades	Read Replies (1) \| Respond to of 86076

Maybe they want some of these megacaps to get bigger so they can start to buy up some third world countries with stock... <VBG>

To: pater tenebrarum who wrote (77007)	11/25/1999 10:44:00 AM
From: CYC	Read Replies (2) \| Respond to of 86076

Heinz and all: Happy Thanksgiving! While we take a break from the market runs today, I will try to speculate on HB's question of why the fed is continuously pumping money into the system. I think the fed, by injecting liquidity into the market, is trying to artificially maintain the interest rate, which will be higher without intervention. Why do they do it? My conjecture is as follows: 1. The fed governors, being new-era clowns as they are, believe the productivity gains driven by technologies are progressing nicely. Therefore, they are increasing the quantity of money to match the quantity of products and services. Their assertion is only half true at best, by any stretch of imagination. But if you ask me, total baloney. Exhibit A, the internut sector. Huge users of technologies. A lot of them are and will remain as non-profit organizations while many others are total frauds. Productive? I don't think so. 2. With the trade deficits at record highs, the feds are running the press to balance the drains of outflowing dollars. After all, the IOUs cost very little to print and they are as good as foreigners think they are. I suspect that a good portion of this excess money are being circulated back into US to help fueling the bubble. Both attempts, 1 & 2, are causing an inflation effect with the quantity of money outpacing the quantity of output. Thus, we have overpriced US assets, including bond, stock, and real estates. If the US does not have a vast land and is densely populated, the real estate will have gone through the roof (as in Japan of 1980s) even though housing markets are already crazy in quite a few selected areas here. What will be the outcome? If the US is in some coordinated maneuvers with the rest of G7 in the creation of money supply, the world is heading for hellish inflation, big time. If the US is alone in this reckless printing, the purchasing power of US dollars will deteriorate in the future with serious consequences. Things don't matter until they do. Having said all that, I can see that all the POS's floating in NASDUNG are generating gases through self-fermentation, which are blowing the bubble bigger. It stinks, but there are always greater fools who love this kind of sh&t. When will it stop? I don't know. Until then, party on. New-era wealth effects. -ng-