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

To: glenn_a who wrote (20457)	10/21/2004 11:58:10 PM
From: LLCF	Respond to of 110194

<Other than that, as I mentioned before, I agree that current storm clouds look very deflationary. Just not sure what the policy response will be if things get really ugly.> I don't see how there is any doubt... Greenspan has already said he'd buy whatever asset needed to be bought to avoid implosion and most other mainstream economists agree. I don't think it's outlandish at all to think the Fed will buy whatever is distressed. Now will they simply continue to print after that like Weimar? I don't know, but does anyone really think they could possibly know where the line is anyway? dAK

To: glenn_a who wrote (20457)	10/22/2004 9:27:03 AM
From: Mike M2	Read Replies (1) \| Respond to of 110194

Glenn, Fed. Gov. Bernanke has spoken about unconventional policy actions - purchasing corporate debt was one of the options he mentioned. Mike

To: glenn_a who wrote (20457)	10/22/2004 9:37:25 AM
From: russwinter	Read Replies (1) \| Respond to of 110194

<The temptation, and even the necessity of devaluing the value of the currency (i.e. inflation) will be very significant. Other than that, as I mentioned before, I agree that current storm clouds look very deflationary. Just not sure what the policy response will be if things get really ugly.> It's already ugly, and the hyper-inflationary policy response is there for all to witness. Who let the dogs out? And people wonder why oil is $55, and GOOG $160? Huge maladjusted inflationary leaks. This is totally irresponsible when your currency is under severe pressure. 6,052 increase in "foreign custody holdings" 1,059 in Fed debt monetizing. And three permanent injections totalling $3.192 billion in just the last week. ny.frb.org