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Pastimes : All Clowns Must Be Destroyed -- Ignore unavailable to you. Want to Upgrade?

To: pater tenebrarum who wrote (4968)	1/28/2000 6:12:00 PM
From: Lucretius	Read Replies (1) \| Respond to of 42523

yep... i smell a melt -g-

To: pater tenebrarum who wrote (4968)	1/29/2000 9:33:00 PM
From: Tommaso	Read Replies (2) \| Respond to of 42523

As soon as the Fed seriously starts trying to remove the huge amount of money that it literally printed (for use in cash machines, assuming that millions of people would panic and make large withdrawals on account of the supposed Y2K thing), there will be an immediate credit pinch. Any minor decline in the stock markets now will set off margin calls. Any further decline will set off removals of cash from mutual funds, which in some cases may already be operating on credit lines for withdrawals. A mere 5% redemption rate will leave all funds, on average, without cash reserves. Everything is in place for a world-wide credit squeeze, of the sort that periodically afflicted the United States internally in the nineteenth century.