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Pastimes : Ask Mohan about the Market

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To: Zeev Hed who wrote (7458)11/8/1997 8:25:00 PM
From: Tommaso  Read Replies (1) of 18056
 
Actually the money supply growth slowed back down a little. M2 is not that much out of line with the last several years. There was a blip, but it's smoothed back down.

I had thought that the fed would not touch interest rates, but the resiliency of the stock market might encourage a little leaning against the wind.

I keep wondering why on earth they don't at least bump the margin rates up to 60%, or initiate some sort of investigation into excess supply of credit to the stock market.

I remember feeling like a criminal in 1969 when I used a cheap bank loan to help buy a convertible bond. I really half felt that the feds would be down on me.

Now someone can borrow $200,000 on a house that's appraised at $180,000 and has a $50,000 mortgage still outstanding on it, and put the whole thing into a mutual fund without anyone asking a pointed question.
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