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

To: KymarFye who wrote (67372)	1/20/2001 10:33:42 PM
From: Square_Dealings	Respond to of 99985

The tab was more like 9 Bln a couple of weeks ago, and increasing at the rate of 2Mln per hour so its up more than that now. The 5 Bln number you refer to is just for the one utility PG&E. Power bills would need to be around 6X what they currently are charging in CA just to cover the real costs of electricity. So if this is the case in a slow economy it should be interesting in an upturn. Nothing has changed in the energy front. The costs are not great when you consider it in the context of the whole financial sector but when it hits one or two big banks hard there is a trickle down effect. If CA consumers were paying the real costs of energy then half of them couldnt afford to live or do business there. A large percentage of the national consumer debt is sitting in CA between credit cards and home mortgages. Im not sure who is going to pay the power bills out there, but its not going to suddenly go away like they seem to be hoping for. Given the importance of CA to the tech economy, I think that the energy crisis there will have a magnified effect for the overall US economy and that until the situation is resolved on a long term basis there is little chance of any significant rebound. I think the increase in liquidity we are seeing is coming from the Fed in the form of bank loans to purchase securities in an effort to save the stock market. The most recent charts I have seen show the level of these loans to be near an all time high just as we had at the top of the bubble, back at Naz 5000. It's the Fed thats been pumping the stock market and it looks good except for the most part the DOW and SP are going no where while the Naz has rebounded slightly. For the amount of money thats supposedly come in, its still not that impressive imo. M.