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Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: long-gone who wrote (89749)	9/18/2002 5:35:07 PM
From: Jim Willie CB	Read Replies (1) \| Respond to of 117136

this tightness issue goes to the heart of managing via Fed in a free market, we might not have gotten into such a bad mess with excesses and imbalances and financial boils in need of lancing then, banker tightness would do exactly what was needed FORCE LIQUIDATIONS, CLEANSE BALANCE SHEETS, BANKRUPT WHERE NECESSARY but we have a Politburo mentality with the Federal Reserve (with audacity) attempting to manage the credit markets, resulting in outrageous failure the reality is that liquidation, cleansing, bankrupting is necessary but the political reality is that such a process is POLITICALLY UNACCEPTABLE since it puts at risk funding the bloated federal govt, which contributes 20% to US GDP so the Fed attempts to ease in aggregate, going totally counter to the responsible banking decisions in micro a classic conflict I believe everything the Fed touches turns to a bubble the culmination of a magnificent economic expansion, resisting all international defaults in 1998 (Russia, LTCM), all perceived risks in 2000 (Y2K Snafus), and all internal liquidity realities in 2001 (economic recession) was a huge asset inflation problem it started with stocks, moved to real estate, and now in Treasurys and the MortBacked Securities everything turns to a distorted dangerous bubble when the policy makers refuse to allow capitalism to act in a capitalist fashion namely, liquidations, cleansing, bankruptcies get ready for one mother of a recession, wrought by a real estate stall and decline, complete with a dollar freefall crisis.... with a crescendo gold explosion the timing is hard to pinpoint, the inevitability is certain JPMorgan's problems only confirm the earthquakes which lead to our expectant climax I remain, A Jackass