Free Republic
Browse · Search
News/Activism
Topics · Post Article

To: palmer
I would call it a rhetorical question,

It's an idiotic question. From an idiot.

For one thing, Cayne was forced to rescind his stock, all but $2/share worth. He was forced to lose at least $8/share looking at post "agreement" market action.

He sold it all at $10.84.

Now it is owned by the Fed which means it was monetized which is also inflationary in the whole (inflated money being fungible).

Only if they create new money to fund it, not if they use cash from maturing bonds or cash from bond sales to fund it.

173 posted on 03/30/2008 7:51:29 AM PDT by Toddsterpatriot (NAFTA opponents are an odd coalition of the no-deodorant Left and the toothless-and-tinfoil right.)
[ Post Reply | Private Reply | To 169 | View Replies ]


To: Toddsterpatriot
He sold it all at $10.84.

After he agreed to sell at $2.

Only if they create new money to fund it, not if they use cash from maturing bonds or cash from bond sales to fund it.

The purchase of these junk securities makes it more likely that they will need to create new money to fund something else. The purchase of the securities is debt monetization which is inflationary. Mises will be proven correct when the dollar is ultimately destroyed but no doubt you will find some way in which he will be technically incorrect.

178 posted on 03/30/2008 9:20:12 AM PDT by palmer
[ Post Reply | Private Reply | To 173 | View Replies ]

Free Republic
Browse · Search
News/Activism
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson