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

To: mishedlo who wrote (71445)	10/8/2006 11:10:00 PM
From: bart13	Read Replies (1) \| Respond to of 110194

Yet I keep hearing the Fed will print its way out of this. No one has ever said how. The real answer is that I don't know, and I'm also not certain... but some of the possibilities are "helo drops" like the 2003 $300/person tax rebate, POMOs/coupon passes, lowering of reserve requirements, forcing US investors to buy bonds, short term pumping with TOMOs & TIOs and perhaps other vehicles yet to be invented, possible exchange controls, "deals" with FCBs in custodials and who knows what all else in "behind the curtain" mode. Its a very different situation now than the early 1920s, but a rough analogy is that the Fed did manage to print itself out of that recession and the CPI actually dropped further then than in the Great Depression.