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To: Jim Willie CB who wrote (4529)	5/23/2003 8:09:50 PM
From: orkrious	Read Replies (1) \| Respond to of 5423

JW, Puplava tonight said that it may be possible for the greenspasm to keep the markets higher at the expense of a lower dollar. The stock market is technically overbought and is fundamentally overvalued, but that doesn’t necessarily mean that it will go down. We live in unprecedented times and our leaders are taking unprecedented measures to fix our economic woes. The Fed has overtly stated that they will support the bond market should it become necessary. The statement alone has provided the necessary supports. The Fed is also supporting the stock market via their open market operations, otherwise known as “repos” or Repurchase Agreements. When the Fed buys securities off the market, it replaces those securities with cash. The cash creates a pool of temporary investment funds that are lately in excess of $30 billion. As of yesterday the pool stood at approximately $40 billion, which provided enough liquidity to keep stocks up for the week after the big sell-off on Monday. You have read many times of Jim Puplava’s “flagpole rallies” where he details the four-step process used to launch stock prices. Michael Bolser of gata.org has done a tremendous amount of research on the mechanism of Federal Reserve Repurchase Agreements and their effect on the Dow averages. In his article titled, “Repurchase Agreements and the Dow” he goes into great detail to explain the whole process. I strongly urge you to read his article to get the background information. Jim Puplava will have Michael Bolser on his radio show in two weeks to go through all of the processes and implications of the Fed Repos. To make the long story short, just be careful if you are shorting this market, ‘cause it’s impossible for the Fed to run out of money. The market can certainly go up, but if it does you can count on a lower dollar. financialsense.com you think he can keep the markets from crashing? tia ork