Silicon Investor (SI) -- The First Internet Community

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.

Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: IngotWeTrust who wrote (45512)	12/3/1999 4:14:00 AM
From: Alex	Read Replies (1) \| Respond to of 116767

THE FED IS PARANOID ABOUT Y2K By JOHN CRUDELE -------------------------------------------------------------------------------- THE Federal Reserve is being driven to distraction by Y2K. Even as the Central Bank has been publicly tightening monetary conditions through three interest rate hikes this year, it has been quietly pumping money galore just in case the Millennium madness being predicted actually does happen. Michael Belkin, a Fed expert who writes the Belkin Report, says Alan Greenspan has allowed $70 billion in cash to flood the U.S. monetary system in recent weeks and has created something called a "repo option." These options could leave the monetary system awash in another $426 billion in additional emergency cash in the next few weeks. "This all adds up to the biggest Fed credit expansion ever. This monetary boost is wildly stimulative for the U.S. equity market in the short term," Belkin says, "but will leave equities painfully vulnerable to a crash once the Y2K-related credit expansion is withdrawn in the new year." In recent weeks the Fed has allowed the nation's money supply to soar and has liberalized collateral requirements for government securities dealers doing business with the Fed. Last week alone, the government's M-3 money supply figure rose at an annual growth rate of 12 percent. That's more than double the normal growth and far above what the Fed would generally allow. But the repo options, which were first sold on Oct. 20, are the thing that could pump more money into the nation's monetary system the quickest. Financial insitutions that buy these options can convert them quickly to cash in a pinch. Ironically, this liquidity burst comes at a time when the Fed is pretending to be very stingy. The third rate hike of the year that came a couple of weeks ago was billed as the Central Bank's "get-tough policy." By the Y2K actions really means that the Fed isn't the Scrooge Wall Street fears but really a very generous Santa. And a Santa who's petrified about the New Year consequences. What the Fed has been doing could help stocks rise nicely over the short term. As I've already said, there are only a few hurdles that could get in the way of bigger bubbles by year end. But the Fed's generosity in itself could be a big long-term problem for the financial markets. The bond market would normally rally if it thought the Fed was being diligent in fighting inflation. And that's precisely the message that the three rate hikes should have conveyed. But bonds have, instead, been very weak despite the Fed's supposed nastiness and rates have risen beyond where the Fed intended. And that is leading many to believe that investors worldwide are wise to the Fed's Santa Claus ruse. That's also why the U.S. dollar has been so weak. And why, traders say, the Fed was forced to rig the bond market last week with massive purchases of all maturities of government securities. The prognosis? The stock market should have a very easy time between now and year's end -- even easier than I first thought. But there could be trouble later when word gets around about the Fed's dirty little secret -- so don't go spreading this around. nypostonline.com

To: IngotWeTrust who wrote (45512)	12/3/1999 5:44:00 AM
From: d:oug	Respond to of 116767

<< told you so, Dougie, Ronnie, and the rest of you ostriches!!!>> Just so there is no mistaken me for Ron, that ass sticking up in the air is Ron's as he has his head stuck in that prairie dog hole looking for me. As for me, you cannot see me because when I saw tall Ron acoming my way I slithered my slimy body into a brown paper bag for ahiding. Now that Ron has his head stuck in that hole I will exit this brown paper bag just as soon as it rains or a big dog unloads a pee and weakens it so I can bust free. As for Y2K, I laugh at the circus of fools on both sides in Seattle. Will the Y2K computer bug cause problems and trouble for the citizens of the world that refused to prepare and do necessary maintanence for a problem that was a no brainer to know about and fix 10 years ago ? AYUP They, the 99.99% of the world population decided not to worry as if their government or someone ELSE will do it for them. Sorry world, but if it becomes a big bad mess 1/1/00 then Hello & Reality Check and again, sorry but this is what you "asked for". I laugh because I'am over prepared and my conceal carry lisence will protect me from those affected by bad, or a lack of, water . And for those who think that they have a secret or out of the way location with the necessaries, and have fire arms protection....then you better hope that any crisis in your area only lasts no more than 2 weeks, because after that you "position" will be under attack, and my guess is that 99% of those who think a big fense and battle station guns will protect you will be in for a BIG unpleasant aWaking of horror. I been then and done that and I know the conditions of what to have and avoid. Or to put it simply, one experienced person in combat can take your position of many people with many weapons. Piece of cake. Imagine a bunch of yous inside a building with good y2k supplies, and imagine one person outside wanting your stuff and he/she has a high powered sniper rifle with night scope. Kiss you ass byebye. Wait him/her out ? Ya, but the smell of the one of yous shot will spoil your stay, would it not. But then 99% of the people think it will be like T.V. or another Safe Harbor. doug