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To: pater tenebrarum who wrote (77330)	11/30/1999 1:00:00 PM
From: Tim McCormick	Read Replies (3) \| Respond to of 86076

I think we are in the middle of an economic crises. Banks are in the process of getting screwed by Korea, Russia, Pakistan and who knows who else. What percentage of loans are bad in Thailand, Indonesia and Japan? What is masking this crises is the illusion of massive excess liquidity. Because financial assets have multi-year momentum preceding this excess liquidity, they have sucked up the money. Yet, it is inevitable this supply of cash will bleed over to hard assets. When the momentum of hard assets gets rolling, we will be astounded by how quickly traditional measures of inflation accelerate. The Fed will be left running back and forth trying to keep all the plates spinning within the framework of quickening waves of inflationary and deflationary fears. This is the destiny of fiat money in the information age. The shrill harmonic producing cracks of moral hazard. Fissures widening into world monetary hegemony masquerading as democracy.

To: pater tenebrarum who wrote (77330)	11/30/1999 1:13:00 PM
From: Cynic 2005	Read Replies (2) \| Respond to of 86076

Under the table, it is! biz.yahoo.com Tuesday November 30, 1:04 pm Eastern Time U.S. Treasuries up on talk of Fed buying By Ellen Freilich NEW YORK, Nov 30 (Reuters) - U.S. Treasuries momentarily dipped lower at mid-morning on Tuesday but then recovered and moved higher on talk that the Federal Reserve was buying two- and five-year notes ''under the table.'' In late morning trade, the benchmark 30-year Treasury bond was up 12/32 to 97-29/32, yielding 6.28 percent. Prices opened higher, erased most early gains, then dipped lower at mid-morning after the National Association of Purchasing Management (NAPM)-Chicago reported gains in the prices paid and employment components of its November business barometer. At the same time that the Chicago purchasing management's barometer came out, the Conference Board reported that its consumer confidence index jumped to 135.8 in November from a revised October reading of 130.5. The reports reinforced the market's concerns about price pressures, tight labor markets and strong consumer spending, traders and analysts said. But the dip on the data was shallow and brief. Prices soon recovered and moved to session highs amid talk that the Federal Reserve was quietly buying two- and five-year notes. The head of one primary dealership estimated that the Fed had bought about $1.0 billion in securities, including two- and five-year notes both in active and off-the-run issues. ''It looks like they did; it trades like they did,'' said another trader, referring to possible purchases by the Fed. ''It sounds like buying for the Bank of Japan intervention.'' The Bank of Japan (BOJ) intervened in the foreign exchange markets on Tuesday for the second straight day, buying dollars and euros for yen. A Federal Reserve Bank of New York spokesman declined to comment on the talk of Fed two- and five-year purchases. Officials of the Bank of Japan's representative office in New York were not immediately available for comment. Traders said the need to extend average portfolio durations at the end of the month also prompted some buying. ''It seems like month-end mark-up,'' said the head trader at a primary government securities dealer, referring to the market's gains. ''There's some month-end extending,'' said another trader. ''The market got a little cheap.'' In late morning trade, three-month bill rates had eased three basis points to 5.17 percent. Six-month rates had eased two basis points to 5.32 percent and year bill rates had eased three basis points to 5.36 percent. Two-year notes were up 3/32 to 99-24/32, yielding 6.01 percent. Five-year notes were up 5/32 to 99-1/32, yielding 6.10 percent. Ten-year notes were also up 7/32 to 98-23/32, yielding 6.17 percent.