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The Federal Reserve is pouring high-powered money into the system in an attempt to make up for the failure of MZM to grow.

Until now, the Fed has sterilized additions to the money supply by selling Treasuries as it added reserves.

The actions of the last 6 weeks show how near we are to a major meltdown in the system.

The US Treasury bond market remained steady in spite of the potential inflation from the flood of money in the system.

1 posted on 10/25/2008 7:10:52 AM PDT by Santiago de la Vega
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To: Santiago de la Vega

Let’s not panic now.


2 posted on 10/25/2008 7:12:20 AM PDT by AmericanMade1776 ( Our Mamma beats your Obama)
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To: Santiago de la Vega
Wow! This kind of liquidity and we still have a credit crunch? It tells me that fear and panic are overriding fundamentals of the market.

Thanks for the post!

3 posted on 10/25/2008 7:18:50 AM PDT by mlocher (USA is a sovereign nation)
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To: Santiago de la Vega

Wilbur Ross on Cavuto just said he is buying Municipal Bonds for the 6% tax free yield.

He is SHELTERING AGAINST OBAMA.

He said Obama would bring increases taxes and this manks tax free bonds more attractive.

Think about this folks, obama increases taxes to essentially FORCE people to put their cash with the government.

NO PRODUCTIVITY.
NO INVESTIMENT
NO INOVATION.
NOTHING.

Just paying to keep the beast of goverment tributed.

THIS CRASH IS THE OBAMA CRASH!

Obama is not just stupid, Obama is HARVARD stupid.


5 posted on 10/25/2008 7:23:10 AM PDT by longtermmemmory (VOTE! http://www.senate.gov and http://www.house.gov)
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To: Santiago de la Vega

AIG has near exhaused it’s 100 billion, plus, Paulson kiss. AIG could end up, alone, eating that money.


8 posted on 10/25/2008 7:39:03 AM PDT by Leisler
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To: Santiago de la Vega

9 posted on 10/25/2008 7:43:20 AM PDT by Leisler
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To: Santiago de la Vega

Won’t this cash infusion eventually lead to inflation and higher interest rates?


10 posted on 10/25/2008 7:56:54 AM PDT by NRG1973
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