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Politics : Ask Michael Burke

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To: PaperChase who wrote (62825)	6/20/1999 10:58:00 PM
From: Freedom Fighter	Read Replies (2) of 132070

PC, Normally I would believe that the Fed's intent was just to try to relieve the credit crunch and not raise stock prices. (Of course the members would know that the fresh liquidity would probably help the stock market too.) In this case I think they were trying to do both even though they would never admit to it. The reason I say this is that one of the rate cuts came one day prior to options expiration and it triggered a massive short covering rally. Waiting one day or two would not have made that much difference except for the fact that it was reported in the press that public put buying had reached extremely high levels just prior to the market break. My guess is that Wall St dealers were on the wrong side of some very big trades going into that expiration. We cannot prove it, but it had ramp job written all over it. Wayne

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