Pascal.
I had promised a friend on the e-mail this morning that I would give this up,
since this isn't worth trying to prove to you. But now that you've
completely insulted me and my intelligence, I will continue.
I work for Bloomberg Financial Markets and worked the economics group
for 3 years. We get our Fed Funds rates from a company called GARBAN Ltd
who in turn gets them from the Fed, and we enter them into the system
which is viewed by 60,000 clients. Like you, we had 100s of calls to
confirm the rates on June 30 that I have mentioned. And by the way,as reported
by the FEDERAL RESERVE BANK OF NEW YORK, the high for that day was 11%
and the low was 3%. Also, a feed we have from the FED, which shows
the AVERAGE RATE that Fed Funds traded at sayd 6%. @ of the biggest
sources you could have. But you probably still don't believe me.
Do you know anyhting about reserve requirements? When reserve banks
need to make reserve requirements---set by the FED to tighten and ease
money supply---they borrow from each other at the Fed Funds rate( the
only thing you actually seem to know). Now if many of the banks are
short on cash and need to borrow for their RESERVE REQUIREMENT, the FED FUNDS
RATE will sky rocket for the simple fact of supply and demand.
So from this simple lesson of economics on Fed Funds, I hope you've learned something.
By the way, don't criticize someone before doing your research. Telling me
I'm a joke and assuming I don't have a clue about economics are 2 HUGE
mistakes on your part.
One last thing. Here are examples of several days where the Fed Funds was below
the Discount Rate---which is explained by one of my above paragraphs:
From June 7, 1993 to Dec 10, 1993, Discount Rate was 3%.
Here are days and rates of closing Fed Funds Rates:
12/10 2.875
12/9 2.9375
12/8 3.000
12/7 2.625
12/6 2.9375
12/3 2.9375
12/2 3.0625
12/1 3.0625
11/26 3.0625
11/24 3.00
11/23 2.9375
I could keep going if you like. Please don't post back on this topic
until you've researched the matter and realized that you've made a
mistake in the way you've treated a Cyberspace friend. |
