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To: elmatador who wrote (22059)	9/7/2007 7:51:49 AM
From: Moominoid	Read Replies (4) \| Respond to of 219536

The liquidity injected by the Fed has nothing to do with a run on banks by depositors. Well maybe except some degree of that mentioned at Countrywide.

To: elmatador who wrote (22059)	9/7/2007 8:03:28 AM
From: Elroy Jetson	Read Replies (1) \| Respond to of 219536

You're a nut. The so called "liquidity problem" has nothing to do with liquidity. A large number of hedge funds, pension funds and investment banks have invested in assets which are no longer worth what they paid for them. No matter how much additional money is lent into the banking system, no one will want to pay "full price" for these damaged assets. Yes, one day they might be worth nearly full value - but that is a long time into the future. Lending huge amounts of money to parties like Citibank has enabled them to lend money to their own investment arms, to replace the capital tied up in these damaged assets. But this will not save the non-bank affiliated investment groups. As many have pointed out, the central bank lending has not fixed the problem because there is no problem in the banking system. The problem is located outside of the banking system, and no bank will want to lend money to an insolvent hedge fund or pension fund. Banks are not experiencing net withdrawals, but net deposits as many move their money out of risky assets and into bank accounts and US Treasuries. When Countrywide Bank first experienced problems, the few people who had more than $100k on deposit removed the excess. But this was a small amount of money which was simply moved to other US banks. Increasing the FDIC insurance level on bank accounts from $100k to $1 million or $10 million will not improve the situation or make the damaged financial assets more valuable. Your claims to the contrary simply reflect your gross misunderstanding of the situation. What must it be like to move through life misunderstanding everything you see? Living is easy with eyes closed, misunderstanding all you see. It’s getting hard to be someone but it all works out, it doesn’t matter much to me. Let me take you down, ’cause I’m going to strawberry fields. Nothing is real and nothing to get hung about. Strawberry fields forever. .