To: GraceZ who wrote (951 ) 2/1/2001 11:35:41 AM From: ahhaha Read Replies (1) | Respond to and the collapse of the NAZ bubble has shown quite nicely why investments do not equal savings. and now look at the obvious inflationary forces that have reared their head, like energy, shelter costs, medical expenses, certain foodstuffs and metals, at some point then, it is conceivable that further attempts at monetary inflation meet with no more takers. this i believe may be one of the main reasons why easy Al's middle name is 'moral hazard'. he has graduated to the art of the pre-emptive bail-out by now whose moves on rates and activities in the repo markets are constantly dictated by crisis situations involving the fickleness of market liquidity. it has been suggested that huge amounts of debt rollovers had to be completed in January, and that the surprise cut was mainly motivated by the potential for crisis the situation harbored. liquidity in the corporate bond market had done a disappearing act after all. this sounds eminently plausible to me.
