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To: pater tenebrarum who wrote (65610)	10/1/1999 8:00:00 PM
From: BGR	Read Replies (1) \| Respond to of 86076

Heinz, I completely agree with you wrt the moral hazard issue. However, let's forget the financial market for a moment. Outside, there is a real world market where people live and conduct business (it is too easy for a trader to forget that market, as it seems is the case for too many on this thread). The so-called fiat monetary policy enables the Fed to tune the functioning of the later market in a much more efficient way (of course, the Fed makes errors too), in particular in times of liquidity crises. The financial market is outside the Fed's domain, anyway. -BGR.