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

To: jimmg who wrote (76441)	12/22/2006 1:34:39 PM
From: NOW	Read Replies (1) \| Respond to of 110194

<There is no conspiracy to reward favored "Pig Men"> Noting conspiratorial at all: it is fully in the open for us all to see.

To: jimmg who wrote (76441)	12/22/2006 2:19:08 PM
From: kris b	Read Replies (1) \| Respond to of 110194

"There are millions of people gambling in the stock market. " FED should shrink money supply rather then expand it like crazy (M3 +10% annually). This would force the other players to contract the credit creation as well. This would in turn deprive the gamblers of the chips to play with. Their games have nothing to do with the real economy. "Americans are borrowing and spending in massive quantities. This is what is driving the stock market. When this stops, the stock market will drop." Ditto. 70% of the S&P 500 profits come from financial engineering/paper shuffling rather then economic activity/production. Contract the credit by 10-20% per year then you will see how sustainable this scam is.

To: jimmg who wrote (76441)	12/22/2006 2:34:53 PM
From: bart13	Read Replies (1) \| Respond to of 110194

The total size of the Fed's balance sheet amounts to about $2,600 per person in the US. Although that's roughly true, the accounting rules that apply at a central bank are not the same as for a normal corporation. For example, the SOMA account at around $800 billion is represented nowhere on the balance sheet and all by itself is only slightly smaller than the balance sheet totals. Another one - currency is carried as a liability on the balance sheet and composes well over 90% of the liabilities.