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.

Strategies & Market Trends : Rande Is . . . HOME -- Ignore unavailable to you. Want to Upgrade?

To: Rock_nj who wrote (48986)	3/13/2001 12:10:20 PM
From: Mark Konrad	Respond to of 57584

Rock, liquidity creation is the Fed's "unseen hand" that may provide the underpinning for an eventual recovery, imo. In the long run, it can be inflationary if money supply consistently outruns growth and productivity but that's not the current problem and won't likely be a problem for some time (due to inventory levels, etc.). I would compare the situation to a patient admitted to the hospital with both a cold and a heart attack. Which would you treat first? A rate cut WITHOUT an increase in liquidity would be a false move, imo, and that's one of the reasons I think this is the real deal. Now, whether this helps promote a rapid cure for our ills is another matter. Few would doubt that the Fed drained and raised too much last year and is certainly not ahead of the curve right now. Just my two cents, fwiw--MK--