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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?


To: valueminded who wrote (49369)3/1/1999 2:45:00 PM
From: Peter Singleton  Respond to of 132070
 
Chris,

<Question: If the fed increases reserves by 2-4 billion,(pretty much a
daily event now) what is the multiplier in terms of money (are reserves
7%?? so it would be roughly 15:1) thanks in advance. And if I have it
all wrong, please explain.>

hehehe!

you do have it all wrong. they bin meanin' ta take da money back out, any day now! honest! <g>

kinda like the bookkeeper who siphons a few c-notes out of cash each night, always intending to pay it all back before anyone finds out <g>

Peter



To: valueminded who wrote (49369)3/1/1999 7:14:00 PM
From: Knighty Tin  Read Replies (2) | Respond to of 132070
 
Chris, If this is a major rally, the bulls are in deep kimshee.

The Fed, of course, is adding reserves, but not fast enough to counter the debt burden of the corporations and individuals gambling on the market. Tens of billions cannot move this market of trillions. They need hundreds of billions. And those ain't available.

MB