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To: pbull who wrote (11773)3/21/2001 8:48:34 PM
From: Jim Willie CB  Read Replies (2) | Respond to of 13572
 
my thoughts on this money supply issue have been expressed somewhere
but briefly, the massive historically huge money supply infusion taking place now at the hands of our inept Politburo, otherwise known as the Federal Reserve, is ....

TO PREVENT AN ILLIQUDITY PROBLEM WITH THE BOND MARKET

the Fed is providing liquidity with bonds, the primary instrument held in treasury vault holdings by member regional banks
the Fed dont give one ratty steamy pile of dogshit to stock market investors
GreenTurd invests in 3-yr TBills, which are doing very well, thank you

the Fed is attempting, and so far succeeding, in preventing the Bond Market from doing what the Stock Market is doing -- COLLAPSING

illiquidity in bonds would drive up interest rates toward 6% in six days
meanwhile, the Fed has succeeded in maintaining calm and stability in the bond market
10yr TNote is around 4.9%... 30yr TBond is around 5.3%... stable

can you imagine if buyers pulled out of bonds without the Fed to show up with billion$ to buy ???
that happened in 1929
stocks went down 80%
interest rates went up to 25%
it could happen

now that the Dow and the invested graybeards are getting whacked, with aging wrinkled peepees on the trading floor, we might see some real pressure from the wealthy who felt protected and smug that only tech trading addicts and zit-faced moron dotcom investors were being handed their heads

dont be too impressed by the Dow drops yday and today
big deal 2% per day each day
that is like the NazComp dropping 50 pts yday and today when at 2500, going to 2400
the big drop for DowDogs is coming soon
let a little short cover rally show itself, back to 9800
then short the living graybeard viagra soaked piss out of the SPX basket

thanks, I am tired now
/ jim