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INSTITUTIONAL ADVISORS OCTOBER 6, 2008
A Primer On (so-called) Safety Nets

Bob Hoye
Institutional Advisors
Oct 9, 2008

"The Federal Reserve stands to take additional actions as needed to provide liquidity and promote the orderly functioning of the markets."
-Chairman Bernanke at Jackson Hole, National Post, September 1, 2007

"Lowering interest rates will certainly help the stock market. There is no question about it."
-CIO Harris Private Bank, Bloomberg, September 11, 2007
(In early September, treasury bill rates were 4.35%. The recent low has been 0.0%)

"Bernanke claims his rate cut would enable him to 'To get out ahead of the situation."
-Wall Street Journal, September 20, 2007

"The Federal Reserve will continue to monitor the financial markets and act as needed to support the effective functioning of these markets and to foster sustainable growth and price stability."
-Fed Governor Randall Kroszner, AP, October 22, 2007

"[T]he 1970s gave way to an age of low inflation thanks in large part to the skill with which central banks learnt to steer policy."
-The Economist, October 18, 2007

"Ben Bernanke is smarter than I am and thinks about this 24/7 which I don't. He leads a superb committee. He is backed by the best monetary policy technical economic staff in the world."
-J. Bradford deLong, Professor at Berkeley. Blog, week of March 19, 2008

"So Congress tried to make sure it would never happen again by creating a system of
regulations and guarantees that provided a safety net for the financial system."
-Paul Krugman, explaining interventionist measures installed after the 1929 debacle.
New York Times, March 21, 2008

"For the first time in months, analysts and executives sound upbeat."
-International Herald Tribune, May 2, 2008

"US policymakers deserve the Nobel Prize for applied economics. The policy response to financial asset deflation was not only fast, but extremely well coordinated."
-Jasper Koll, President, Tantallon Research, Business Times,
Singapore Investment Round Table, May 15, 2008

"So Congress tried to make sure it would never happen again by creating a system of regulations and guarantees that provided a safety net for the financial system."
-Paul Krugman, explaining interventionist measures installed after the 1929 debacle.
New York Times, March 21, 2008

Oct 6, 2008
-Bob
Hoye
Institutional Advisors
email:
bobhoye@institutionaladvisors.com
website: www.institutionaladvisors.com

INSTITUTIONAL ADVISORS OCTOBER 6, 2008

Hoye Archives

The opinions in this report are solely those of the author. The information herein was obtained from various sources; however we do not guarantee its accuracy or completeness. This research report is prepared for general circulation and is circulated for general information only. It does not have regard to the specific investment objectives, financial situation and the particular needs of any specific person who may receive this report. Investors should seek financial advice regarding the appropriateness of investing in any securities or investment strategies discussed or recommended in this report and should understand that statements regarding future prospects may not be realized.

Investors should note that income from such securities, if any, may fluctuate and that each security's price or value may rise or fall. Accordingly, investors may receive back less than originally invested. Past performance is not necessarily a guide to future performance. Neither the information nor any opinion expressed constitutes an offer to buy or sell any securities or options or futures contracts. Foreign currency rates of exchange may adversely affect the value, price or income of any security or related investment mentioned in this report. In addition, investors in securities such as ADRs, whose values are influenced by the currency of the underlying security, effectively assume currency risk. Moreover, from time to time, members of the Institutional Advisors team may be long or short positions discussed in our publications.

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