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To: Jeff Jordan who wrote (404346)	5/7/2010 5:49:25 PM
From: Secret_Agent_Man	2 Recommendations Respond to of 436258

Wall Street Journal, Saturday, October 26, 1929 The pattern of that market dislocation was for an initial decline on Black Thursday (24th), a recovery on Friday (25th), an uneasy or blue Monday (28th), and then the Great Crash itself on Black Tuesday, October 29, 1929. But even then, with the market down about 40%, it had a remarkable distance to go. The bottom in US equities was finally reached, down 90% from the September 1929 top, in July of 1932, the trough of the Great Depression. In the aftermath of the Crash of 1987, Greenspan was able to flood the markets with liquidity, sparking a remarkable recovery in equity prices. Can Bernanke do the same thing? Caution when investing is always advisable. "Anyone who bought stocks in mid-1929(2010) and held onto them saw most of his or her adult life pass by before getting back to even." Richard M. Salsman

To: Jeff Jordan who wrote (404346)	5/7/2010 5:55:46 PM
From: Real Man	Respond to of 436258

Yep. SOMA is the account. You sleepy yet? The Fed created 1.725 Trillion to buy MBS, treasuries, and agencies for this account. They now claim they will sell, or sterilize the printing as the economy improves. You must believe!!! I don't believe the pro here, he is contradicting everything I read elsewhere. -g- How 1. The national bank declares an extremely low rate of interest, for example 0.5%. 2. The national bank credits its own bank account with money created from 'thin air', probably just by adding to a number on its computer. 3. The newly created money is then used for buying government bonds from financial firms such as banks, insurance companies and pension funds. 4. The banks, insurance companies and pension funds can then use the money they have received for the bonds for giving loans or even buying back more bonds from the national bank, care should be taken by the country performing QE as this could be viewed as money laundering to get around the Maastricht Treaty rules of not being able to finance public deficits by printing money.