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Strategies & Market Trends : Strictly: Drilling II -- Ignore unavailable to you. Want to Upgrade?

To: Challo Jeregy who wrote (5121)	12/10/2001 9:09:43 PM
From: isopatch	Read Replies (2) \| Respond to of 36161

Hi Challo. Right. A one day drain on Friday AND... today? Pedal's right back to the metal with 9 billion in injections! app.ny.frb.org Greenpump almost daring major domestic and foreign holds to dump their bonds. Looks like a show down is fast approaching. Gotten to the point just saying he's "running out of room to maneuver" is a woefully inadequate image. Actually this zig zap scrambling reminds me more of a QB behind the line of scrimmage with 3 BIG linemen blitzing him. This teetering Mt Everest of debt built up in recent years is going to pound the economy no matter what he does. 1. If he continues this blizzard of confetti, the bond market tanks and drives rates way up any maturity beyond 2 yrs So, the economy is goes into a much deeper deflationary recession (or depression). 2. If he drains reserves to placate the bond markets? That short circuits bail out of an increasingly number of troubled banks here and abroad, as well as other "event risks". On top of massive derivative exposure, major banks are seeing loan portfolios deteriorate rapidly. Without continuing to debasing the $ with all this confetti, we we'll get a string of major financial and/or corporate failures and still... "the economy goes into a much deeper deflationary recession (or depression)" Can we luck out again and just muddle through? Of course, as always, there are widely varying opinions on that across the financial markets. FWIW, think the markets and the economy are both going much lower and risks of the kind of collapse are fast increasing. That's why is like cash and gold. Welcome to our thread. Best regards, Isopatch