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To: John Pitera who wrote (85653)	2/21/2001 1:54:39 AM
From: patron_anejo_por_favor	Read Replies (2) \| Respond to of 86076

<<if one has 2 trillion dollars leave the economy via shrinking equity market capitalizations and 2 trillion dollars of credit injected by the Monetary authority, what has really changed in the aggregate?>> Inflation...either of goods/services or of (other) assets, ie, real estate. (Sorry to butt in, but it was too good to resist<G>)

To: John Pitera who wrote (85653)	2/21/2001 9:42:43 AM
From: pater tenebrarum	Read Replies (1) \| Respond to of 86076

John, what has changed is that the $2 trillion have been transformed from claims into obligations (from the PoV of the debtors). besides, were the monetary authorities really to inject 2 trillion dollars, we'd have hyper-inflation and the bond market would cease to exist (they'd have to monetize a lot of debt to achieve an injection of this size). debt must be paid back, it is a liability - stocks are an asset.