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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: saket chadda who wrote (34715)	12/4/1999 6:03:00 PM
From: Terry Whitman	Respond to of 99985

Saket- Whenever I talk about the Fed 'Printing Money", it is intended to mean the same thing as 'created more credit'. It really is the same thing- it just doesn't exist as ink and paper. Hope this helps.

To: saket chadda who wrote (34715)	12/4/1999 6:06:00 PM
From: HairBall	Read Replies (1) \| Respond to of 99985

saket chadda: Thanks for the contribution. I still need to look at my charts this weekend, but it does look like a possible head fake. (exhaustion gap) As always, time will tell... Regards, LG

To: saket chadda who wrote (34715)	12/5/1999 1:44:00 AM
From: Lee Lichterman III	Read Replies (1) \| Respond to of 99985

Your point about just printing money is true but Bond repos do add liquidity/inject funds back into the economy. Way too complicated to write here so I will even give you the benefit of the doubt in this situation and point to it this way in a flat trade. I am the Govt. and sold you Bonds a long time ago for which you gave up cash. I do an early morning Bond repo so you get cash back plus interest. Now if you just sold your bond, are you going to buy another one? Doubtful, you will most likely turn around and buy stock intead, or a new car etc. Since those that sell bonds in these repos tend to be institutional investors, 99% goes right into the market within hours. Good Luck, Lee