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To: Hawkmoon who wrote (29818)3/12/1999 9:05:00 AM
From: Bobby Yellin  Respond to of 116759
 
I would think that since most of this wonderful bubble is the result of liquidity..it would have the opposite effect..the greater fool theory..who will get out first when either liquidity no longer works or the fountain is turned off..
gee..reading about how government agencies are now possibly hedging
..isn't that insider trading..
also that article posted by John by Greg Pickup about governments
wanting to get into the action
..all this is the opposite of confidence although it is a fantastic
wall of worry



To: Hawkmoon who wrote (29818)3/12/1999 10:15:00 AM
From: long-gone  Read Replies (2) | Respond to of 116759
 
<<That kind of liquidity also helps to assist in maintaining confidence in the financial system.>>
And just Why should there be any confidence in it?



To: Hawkmoon who wrote (29818)3/12/1999 1:21:00 PM
From: long-gone  Respond to of 116759
 
Well Ron,
Looks like anyone short gold is going to get their ass kicked.
The pro-gold camp has a key Western Democratic Senator(or two) as well as at least one Western Republican Senator and the AFL-CIO.
"Let's make a Deal" has started. With these powers whom more do we need? Maybe we should look into Dole,Forbes,or Bush (opps,think he's in the right camp now)!



To: Hawkmoon who wrote (29818)3/12/1999 3:39:00 PM
From: Zardoz  Read Replies (1) | Respond to of 116759
 
"... note that the Fed has not up the discount/Fed Funds rate since the 3 step reduction last fall. Yet rates are moving up on the 30 year bond.

This means that the banks have a low cost for capital from the Fed and are loaing it at much higher rates. This adds liquidity and will act as an additional buffer against future losses.

That kind of liquidity also helps to assist in maintaining confidence in the financial system."

Excellent comment Ron...