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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?


To: pater tenebrarum who wrote (35555)12/21/1999 10:50:00 AM
From: Fun-da-Mental#1  Read Replies (1) | Respond to of 99985
 
Why is the Fed lending more money at higher rates, when they could lend less money at lower rates instead, and still keep the market happy, but not have a punishing effect on the economy in the long run?

Fun-da-Mental



To: pater tenebrarum who wrote (35555)12/21/1999 12:25:00 PM
From: Jorj X Mckie  Read Replies (2) | Respond to of 99985
 
Heinz,
For the sake of argument, I would like to put something else on the table. What if the fed actions are not related to the stock market at all and the stock market reactions are just a by-product that the fed has to live with because there is a bigger and more serious problem that the fed is trying to resolve with the current course of action (liquidity etc...). What if AG is actually a really bright guy and is in a no-win situation where he has to make a King Solomon like decision in the fed policy. Assuming that AG is not stupid and knows that the bubble will eventually burst and he will be blamed for it, what does the fed see that would cause the current course of action?

JXM

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