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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: PaperChase who wrote (62825)	6/20/1999 10:55:00 AM
From: Tommaso	Respond to of 132070

If the intention of the Fed was to raise stock prices last fall, then their intention must be to lower stock prices now, since they are now doing the opposite of what they did last fall. Incidentally, following the helpful lines of reasoning suggested by your posts, it is easy to understand that the wind blows because the trees start waving their branches and push the air around. Also, the reason farmers grow food is to keep us all hooked on their product. If we all stopped eating, we could put them out of business and also save ourselves a lot of money.

To: PaperChase who wrote (62825)	6/20/1999 10:58:00 PM
From: Freedom Fighter	Read Replies (2) \| Respond to 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