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Strategies & Market Trends : Currencies and the Global Capital Markets

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To: Henry Volquardsen who wrote (1178)1/28/1999 7:24:00 PM
From: Gersh Avery  Read Replies (1) of 3536
 
Hi Henry ..

It was a comment from me that triggered the request for further information about fed liquidity drains from Nancy and Chip.

The last couple of days I've been thinking about fed actions from a different angle. That would be an effect rather than a cause.

I had been looking at it as if changes in the market place took place because of available funds to through at the market.

My new outlook looks at fed actions being a reaction to already existing sets of circumstances.

If large amounts of stock have been sold off in the market and cash is set on the side, then the reserves of cash within the system would be higher than fed targets. Therefor the fed would drain to get the reserves back into balance. If this is the case then fed action could display large (but well concealed) market movements before they become well known in the market place.

Your thoughts?

Is there a symbol for fed funds rates that I could plug in and chart?

Gersh
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