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Strategies & Market Trends : Heinz Blasnik- Views You Can Use -- Ignore unavailable to you. Want to Upgrade?


To: GraceZ who wrote (396)4/22/2003 3:18:03 PM
From: LLCF  Read Replies (1) | Respond to of 4914
 
<The Fed can only add money by adding reserves.>

<It doesn't enter the system if people aren't willing to borrow it.>

No, the fed can monitize securities, no? Or adjust non-borrowed reserves? Besides, as long as there is a 'bid and offer' [we're probably not far from 'no bid'] there is always a willing borrower... maybe the fed needs to start lowering it's offers! LOL, Borrowers aren't too interested at todays prices anymore I suppose. Me neither. Anyway... aren't you really saying that if there are no borrowers there won't be much of a 'multiplier' effect? The injection would be one time?

<Rising cash levels doesn't mean it's being created by the Fed. >

Did I say that?

< The Fed has cut permanent creation to almost zero in the last year>

What's that mean?

<It's the currency portion of the money supply which has risen sharply.>

Couldn't currency creation be pretty permanent?

DAK



To: GraceZ who wrote (396)4/22/2003 3:42:53 PM
From: LLCF  Read Replies (1) | Respond to of 4914
 
Oh, bTW... you bullish now?

dAK



To: GraceZ who wrote (396)4/23/2003 4:57:07 AM
From: sun-tzu  Read Replies (1) | Respond to of 4914
 
The Fed can only add money by adding reserves. It doesn't enter the system if people aren't willing to borrow it.

the real estate and housing markets have not stopped in my area. we just built and moved into a new house and sold our old house. additionally, we are developing 4 1/2 acres of commercial real estate in a new professional complex in our area. plenty of money being borrowed and used in these parts.



To: GraceZ who wrote (396)4/23/2003 1:17:37 PM
From: MulhollandDrive  Read Replies (1) | Respond to of 4914
 
>>You have to wonder where all that currency is going considering that we are fast moving to a cashless society here in the US<<

perhaps it made it's way to irak.