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

To: carranza2 who wrote (85249)	8/17/2007 9:21:50 AM
From: glenn_a	Respond to of 110194

carranca2. ((No hope that the excess liquidity will be wrung out of the system. ... The Day of Reckoning has been postponed.)) Well, I agree with the second part above, that the Day of Reckoning has been postponed. But at best I figure we witness today TMOADCB, or The Mother of All Dead Cat Bounces. It seems to me we are in a situation similar to the onset of the Great Depression. The extent of the liquidity and solvency black hole would appear to be so massive, that I very much doubt any gesture by the Fed will do anything but postpone the inevitable by a few days or weeks at most. It would appear that "excess liquidity" is indeed evaporating from the financial markets ... Any Fed gesture to cut the discount rate may provide near-term relief, but will have very little impact IMO on what unfolds over the next couple of years. Thoughts? glenn