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To: Investor2 who wrote (60180)9/2/1999 2:34:00 PM
From: Defrocked  Read Replies (1) | Respond to of 86076
 
I think liquidity needs will seek the short end,
not bonds. In some sense, it's a wash: the banks
are liquid, sell bills, give the cash to customers,
most customers will hold cash, some may buy bills,
the cash will eventually end up back in the banks
which will reinvest the money in bills. And the Fed
will facilitate the activity.


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