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To: stomper who wrote (12893)4/21/2001 7:27:11 PM
From: pbull  Read Replies (1) | Respond to of 13572
 
Thanks for that post, specifically identifying where all that money went.
In simplest terms, the lending rate doesn't matter if banks won't lend. At some point, if history is any guide at all, that will change. But I am seeing no indication of that yet, and, in fact, they are actually tightening their lending requirements as the recession drags on and more customers encounter problems.

PB



To: stomper who wrote (12893)4/22/2001 12:30:00 AM
From: Jim Willie CB  Respond to of 13572
 
debt trapping, interesting phrase
pushing on a string, understood concept

I say the Fed is actively preventing a liquidity problem with the bond market, whereby rates would RISE despite the economic slowdown

bankers are NOT lending, period
we got major league trouble in a few months
I still say midsummer will contain econ nightmares
and new Naz lows, and new S&P lows
nice summary, jim



To: stomper who wrote (12893)4/22/2001 12:30:12 AM
From: Jim Willie CB  Read Replies (1) | Respond to of 13572
 
debt trapping, interesting phrase
pushing on a string, understood concept

I say the Fed is actively preventing a liquidity problem with the bond market, whereby rates would RISE despite the economic slowdown

bankers are NOT lending, period
we got major league trouble in a few months
I still say midsummer will contain econ nightmares
and new Naz lows, and new S&P lows

as for lowest upcoming FedFunds rate, who knows?
it could be lower than 3.5% eventually, if necessary
nice summary, jim