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To: IceShark who wrote (1614)1/7/2000 9:32:00 AM
From: Cynic 2005  Respond to of 42523
 
Any signs of liquidity drying-up?
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prudentbear.com
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Nothing. Zip. Zed.
Posted By: Mr. Moto
Date: Thursday, 1/6/0, at 11:22 p.m.

In Response To: Mr Moto, Any signs of liquidity starting (Java Bear)

We're moving along fairly rapidly; or at least it seems that way when you have your antennae out for so many possibilties that never register.

Next question appears to be: What does the Fed do as the first large, term-repo comes-off over the weekend?

I've never thought they'll do anything; and will be surprised if they act in any way beyond regular maintenance activities -- overnight repo's, or some short-term intervention. Why should they do anything? They injected ~ $50 billion of permanent funds last year, besting 1997's all-time record amount by a few billion. Of course, if they do make a move,...well, we've been there before.

Why does anyone feel that Mr. Greenspan would be uncomfortable to see this market at the pre-Y2K level? All the term repo's come-off. He's "taken back" the three rate hikes. They've still got their media and in-house mouthpieces. Looks pretty good to me.

I read today, by the way, that the consensus in the bond pits is that tomorrow's report on the employment situation can't hurt bonds that badly. They already feel a hike coming, and have prepared accordingly. But the bond guys feel a bad number could wreak more havoc on equities. Will it be a bad number? By nearly every account I've read, it should be. But, last time I looked, we still have a government loaded to the brim with liars and criminals.