Gene Inger

Short-Term Hurdles Become Long-Term Obstacles

thanks.. yes I'm well aware of these factors; as all through the first half of 2007, we tried to enlighten our ingerletter.com members about the falacious perception of 'great liquidity' that was paper-based and thus incapable of making it 'different this time'. That's why we said it was indeed 'different'. .. it was more risky, not less risky, as everyone found out over time.

Further, I believe today's rate cut is NOT aimed at the public though nominally may help some; but rather maintaining solvency and systemic liquidity, not trying to bail out anybody. That was of course the issue in 1930; so if they can avoid major bank failures, the rest of it can migrate through time, but be mitigated with respect to the Recession turning into some worse or more enduring. And the impact on commercial and plastic is essentially yet to come.

gene inger
ingerletter.com