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Strategies & Market Trends : Ask DrBob -- Ignore unavailable to you. Want to Upgrade?


To: longdong_63 who wrote (44337)9/21/2001 12:05:04 PM
From: jpdunwell  Respond to of 100058
 
LD,

<<However, I am starting to believe as the FOMC pours more and more liquidity into the markets we will see a turn. If you make money cheap enough you will eventually attract loans and later into the recovery chase folks out of CD's and money markets since it is no longer yielding a good return. >>

That is a distinct possibility, but it does not make a case for the bubble being deflated. Instead, it argues for a reflation of the bubble, and a continuation of the process that drove us to such extremes. I really do not want to repeat this mess, and unpleasant as it might be, would much rather take the medicine now and move forward on solid footing. Arguments against this reflation being successful include the fact that most consumers and corporations are already tapped out and will not be able to get new loans leading to defaults and bankruptcies (already at record numbers), and that money markets are making a nice 15% return just this week over the stock market. LOL. But, who knows??

JP