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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Mike M2 who wrote (88310)	1/11/2001 8:31:40 PM
From: Thomas M.	Respond to of 132070

Great piece by bank analyst non-pareil, Charles Peabody: prudentbear.com This is a notion that Doug Noland has mentioned in the past: <<< If the Fed is to inject sufficient liquidity to reflate asset values, there arise two significant risks. The first is that history shows us that such injections of liquidity (while they can arrest the deflation process in a particular asset) rarely seek out the devaluing asset, but instead seek out the inflating assets. In short, the hemorrhaging in the TMT sector may be halted, but the real estate bubble is likely to get worse. And so while temporary relief may be brought to one asset, bigger problems may emerge in another. >>>

To: Mike M2 who wrote (88310)	1/11/2001 8:32:30 PM
From: Thomas M.	Respond to of 132070

Great piece by bank analyst non-pareil, Charles Peabody: prudentbear.com This is a notion that Doug Noland has mentioned in the past: <<< If the Fed is to inject sufficient liquidity to reflate asset values, there arise two significant risks. First, history shows us that such injections of liquidity (while they can arrest the deflation process in a particular asset) rarely seek out the devaluing asset, but instead seek out the inflating assets. In short, the hemorrhaging in the TMT sector may be halted, but the real estate bubble is likely to get worse. And so while temporary relief may be brought to one asset, bigger problems may emerge in another. >>>