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Strategies & Market Trends : Waiting for the big Kahuna

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To: Bilow who wrote (14824)3/8/1998 10:41:00 PM
From: paulmcg0  Read Replies (1) of 94695
 
[About that Fed injection of liquidity in '93. It looks to me like they are injecting it about as fast as they can]

The Washington Post ran an article in the Feb. 23, 1997 issue, about how the Fed and other government agencies try to prevent a crash. Here's the link: washingtonpost.com I don't think this is a good idea -- market manipulation attempts usually make the situation worse.

I recall reading a Federal Reserve sponsored research paper about how they tried to control the 1987 crash from spreading, but I don't remember the reference. In essence, they got into the derivatives market and boosted the index contracts. I'll have to locate that article.

Paul McGinnis
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