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To: Shack who wrote (64076)2/1/2001 7:29:37 PM
From: pater tenebrarum  Read Replies (1) | Respond to of 436258
 
all they can conceivably do is postpone the day of reckoning. at the same time, they are aggravating the imbalances...the current money printing exercise is not normal...it's alarming. it's so extreme, and has had so little effect, that i think it's going to fail this time.



To: Shack who wrote (64076)2/1/2001 7:41:55 PM
From: UnBelievable  Read Replies (2) | Respond to of 436258
 
In The Short Term It May Be That A Significant Portion Of The Inflationary Nature of Excess Currency Production Actually Is Primarily Focused On Financial Assets (Stocks).

Given the extent of foreign investment currently in our market I would imagine that the amount of excess currency which would need to be created to maintain nominally stable or growing stock prices given the inevitable repatriation of foreign investments would be significantly greater than we have seen thus far.

The problem is that the market at this time is acting like a sponge absorbing the excess liquidity. But as soon as the process of attempting to convert the equity assets into real stuff begins (and it has) the result has to be rapid deflation of the stock market or ruinous levels of inflation.