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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: Dr. Voodoo who wrote (81156)	9/20/2008 5:55:16 AM
From: Real Man	1 Recommendation Read Replies (1) \| Respond to of 94695

The liquidity fix is in, although 400 billion somehow did not work initially after a failure of a few firms as counterparties. Taking over the banking crap by the government (the Volcker fix) has the potential to put a long term bottom in this market. The SEC step was dumb, because they castrated the derivative market, and it's now limping. The troubles were everywhere - mainly money markets, currency markets, AND the stock markets. And looking back at this week, it looks like without all this the markets would have crashed, the derivative bomb went off, and 400 billion they quickly injected was not enough to put out the fire - I think, maybe because of SEC mistake. We'll C next week. If they make an exemption for the MM, we'll be OK for a while, unless of course ... we get a currency run. But we should not crash. -g- Overall, it seems, $1-2 Trillion of additional debt to solve the banking crisis short term should not put a huge dent on US government finances. Well, it IS huge, but so is US GDP. In comparison with US GDP it's not so huge. We can deal with it later.