12/20/07

Comments from an astute observer

>......the Fed has no chance of providing meaningful “liquidity” when the Federal government is issuing Treasuries at ten times the rate the Fed can absorb them. At that point, Americans would see better that the resources we need to invest, compete and become a financially sound nation are being hoarded by the Federal government and sent up in flames. (Highly recommended source: http://hussmanfunds.com/)

Dr. Hussman feels the Fed is adding little or no liquidity, not enough to make a dent on the problems facing the financial system.

It is quite possible, however, that the Fed is in the process of diverting (not adding) liquidity from those who do not need it to financially strapped institutions. In this case it is a worthwhile effort.

More on http://www.peterdag.com/.

George Dagnino, PhD
Editor, The Peter Dag Portfolio
Since 1977

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