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Pastimes : The Naked Truth - Big Kahuna a Myth

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To: accountclosed who wrote (16645)1/21/1999 2:15:00 PM
From: bill meehan  Read Replies (4) of 86076
 
AR: I believe Poole's observation is very market negative. He's right about the fact that there's much less systemic risk (due to far less leverage in emerging market debt & illiquid securities). We saw no signs of disruption in the domestic credit market when traders began to worry about Brazil again recently. That means those who still believe that the Fed will automatically ease again should problems flare-up ANYWHERE are wrong. The situation is much different now, so the Fed's response will also be different. The Fed will not ease at the drop of a hat (or an emerging economy).
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