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To: Earlie who wrote (140649)	12/27/2001 10:55:08 PM
From: The Freep	Respond to of 436258

I am just curious if anyone on this thread knows how much the Fed has injected this time of year the last few years. I wonder if there isn't a large pump right before the new year all the time (yeah, yeah, I know. . . not THIS large an influx). I wonder, too, if there's any reason the Fed would add liquidity due to the debut of the Euro as cash on Jan 1? (Note: I don't know of any reason, but if there is one, I figure someone on this thread can tell me!) the freep

To: Earlie who wrote (140649)	12/27/2001 10:59:47 PM
From: Bill/WA	Read Replies (3) \| Respond to of 436258

Earlie, <<This is an insane amount and suggests that he is being forced into some holiday weekend meetings ala LTCM.>> don't know if it could be related but; one of the stocks i track options on (PUTS) is JPM. the volume on the put side (esp today) was quiet heavy. plus, a week or two ago i just happened to catch a meredith whitney (from wacovia[sic] i think) mention that JPM's exposure to enron (and derivatives) is 2x's what is being reported. i think she quoted something over the $2B mark. Bill/WA

To: Earlie who wrote (140649)	12/29/2001 1:33:23 PM
From: lifeisgood	Read Replies (1) \| Respond to of 436258

One possible explanation for the huge liquidity recently added is that, given the huge loss of wages (and thus tax revenue), the consumer and economy need more juice (even if it's borrowed). WITHHOLDING PLUNGES 9.8%, DOWN 3.4% PAST 4-WEEKS. LACK OF BONUSES HURTS. SUPER-SIZED DROP IN TAXABLE INCOME SAYS US ECONOMY WEAKER THAN EXPECTED. Income and employment taxes withheld from all US salaried employees plunged 9.8% over the five days ended Thursday, December 20 vs. the same five days a year ago. That is the largest one-week drop that did not result from a calendar quirk or September 11 since we have been tracking. Two reasons for the decline. 1. December historically is the biggest month for withheld income tax payments, as opposed to April for income taxes not withheld. In December most year-end bonus payments are made. This year, bonus income is way down. 2. In November there were huge numbers of layoffs that boosted withholding due to taxable severance packages. Those people are now not earning taxable income. No one has been predicting a drop this big in current income. Conventional wisdom says that the consumer will bail out the US economy -- not with declines in income of 3.4% over a four week period. Not only does a decline in taxable income of this size presage weakness in the US economy going forward, but the budget surplus is definitely now just a memory since spending is also surging. trimtabs.com