Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: John Madarasz who wrote (61427)	1/25/2001 9:16:59 AM
From: GraceZ	Read Replies (1) \| Respond to of 436258

at this stage in the game, so close to a fed meeting, have any interpretative value re: interest rates? Notice that the size of the RPs keeps getting larger and larger. They are making these large infusions to defend the rate that they set, because loan demand is high, the rate is rising above their target. In not allowing the market to determine the proper rate (who the hell knows what the "proper" rate is?) they are missing the information that the market is giving them on the price of money. Putting money in the system at a lower rate than the market would have it go tends to bring in more demand.....and when the demand rises it puts upward pressure on rates. It's a vicious cycle.

To: John Madarasz who wrote (61427)	1/25/2001 10:00:43 AM
From: LLCF	Respond to of 436258

<interesting stuff to say the least... and a good explanation for the cycle inversions that seem to be evolving.> So this cycle has officially been inverted?? Seems like a very 'weak' inversion, bodes poorly for the next cycle? TIA DAK

To: John Madarasz who wrote (61427)	1/25/2001 10:51:41 AM
From: pater tenebrarum	Read Replies (1) \| Respond to of 436258

yes, they are pumping like CRAZY. this has to be the biggest monetary inflation of all time...racing headlong toward the cliff as it were. it goes to show that it takes more and more fiat money to reliquefy the faltering bubble, and imo there are only two possible outcomes, A) the reliquefication attempt succeeds in blowing the bubble up again, in which case commodity prices would skyrocket, or B) it fails, and we're already in a liquidity trap situation. i would submit that there's a crucial difference between what's happening now and prior to y2k. back then, the economy was still overheating, and in fact expanding very fast. NOW it is tanking, and it is taking the weak borrowers down at incredible speed. so things may well be 'different this time'.