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Pastimes : Clown-Free Zone... sorry, no clowns allowed -- Ignore unavailable to you. Want to Upgrade?

To: Ken98 who wrote (17725)	9/12/2000 5:08:43 PM
From: pater tenebrarum	Respond to of 436258

the following portion: "It is true that this deficit, reflecting as it does the lack of sufficient domestic savings and investment, has the potential to destabilise the current rosy picture," she said, adding that any destabilisation "would take some time to play out." needs to be modified...the destabilisation, if and when it occurs, will happen with lightning speed. i mean what's the attention span of these morons? is the Asian crisis already forgotten? the exact same situation was at work there: huge current account deficits were financed via the capital account, engendering an unsound asset inflation boom. and then they found out that the capital account can reverse in a nano-second, but the current account can not. all this new era speak is imo either a sign of bureaucratic ineptness (in other words, the demi-gods at the Fed are vastly overrated) or it's a half-assed attempt to keep the floodgates from opening by calming down some nervous nellies at the margin who seem eager to jump ship. all you have to do is look at credit spreads: you can drive a truck through those. in other words, in spite of the liquidity splurge, the crunch is already on. i think that may well scare them a bit....but i don't commiserate, since they have created the situation. as for CMB/JPM...couldn't agree more.