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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: austrieconomist who wrote (1433)	10/12/2003 10:37:12 AM
From: austrieconomist	Respond to of 110194

Comstock Partners, point/counterpoint worth pondering for U.S. equity investors/traders: comstockfunds.com I am aligned with the reader on this exchange.

To: austrieconomist who wrote (1433)	10/12/2003 10:56:49 AM
From: orkrious	Read Replies (3) \| Respond to of 110194

I cannot figure out what is motivating the Fed to drop the supply of liquidity at this time. the fed doesn't have to do anything. people just have to start saving a little (or spend less) and the velocity of money will slow down. as velocity drops, so will money supply.

To: austrieconomist who wrote (1433)	10/12/2003 1:35:36 PM
From: russwinter	Read Replies (1) \| Respond to of 110194

<I cannot figure out what is motivating the Fed to drop the supply of liquidity at this time. > Possibilities: 1. Spikes in gold and other inflation sensitive commodities. 2. Spikes in TIPS (and other bond yields). 3. Animal spirits too aggressive in junk, RE and equity markets. Note: this should be an issue for responsible CB's, but maybe not for this one? 4. Japanese are being overwhelmed now in their agreed to currency adjustment. Agreements (coordinated and controlled) have been made, now is a poor time to flood the markets with more easy dollars, with foreign CBs already forced (to prevent a sudden USD collapse) to buy $5b in US debt a week.