Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Gold and Silver Juniors, Mid-tiers and Producers -- Ignore unavailable to you. Want to Upgrade?

To: marcos who wrote (59867)	6/5/2008 9:52:13 PM
From: tyc:>	Read Replies (1) \| Respond to of 78405

>>can it work enough to do the job of knocking back excess credit use ? What's the opposite to, "can't have your cake and eat it too" ? Isn't it possible that excess credit is a thing of the past ? That the banking systems has taken its lumps and written off billions of "excess credit", and for that reason we no longer have excess credit to knock back. Perhaps we have not enough credit these days, aka "credit crunch". The last thing we need is another Volker to lock the door after the horse has been stolen.

To: marcos who wrote (59867)	6/6/2008 1:04:36 PM
From: LLCF	Read Replies (1) \| Respond to of 78405

<it's so tempting to believe that by gentle tweaking you can 'let the air out slowly', like DAK says, but is that possible, can it work enough to do the job of knocking back excess credit use and malinvestment? > I don't think that will happen... I just think that's what they'll try to do. I think the gig is up, the pigs are in the tunnel and we're going pretty deep on this one. Bad news. The malinvestment is unwinding now regardless of MS and Fed... but I just think they'll error on the side of loose money for some time to come. There is no stomach for tight policy IMHO. It would look heartless. When everyone is buying their second wheelbarrow to carry money to the store, then there will be stomach. HEY, maybe those SUV's will come in handy after all! To carry paper money around. DAK