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Zeev Hed

07/08/03 2:26 PM

#127633 RE: Ace Hanlon #127621

I think the fed has successfully averted a melt down and got a soft landing, the penalty is a lengthy period of sub par" economic growth, the alternative would have been a sudden dislocation, 10% plus unemployment, major economic contraction lasting possibly three or more years and associated with that, budget deficits in the $600 B to $800 B annually and waves of bankruptcies. I think the former is causing less misery to the majority of people and thus it is better than the latter. Just added TARO here at $56.24.

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redhot

07/08/03 2:57 PM

#127668 RE: Ace Hanlon #127621


in edit-Instead of just pouring in liquidity that would be seen as more AG-put activity and accomplish little, parking the equities and gently, invisibly un-parking would be a much more effective [difreent kind of] PUT .

The Fed PUT may well succeed if the liquidity injection takes large blocs out of the market and is able to park them [where?], which leaves lesser shareholders with more modestly inflated values instead of acute and permanent losses. How to later un-park can be figured-out by you, Zeev and other bright lights. It can be done. redhot