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

To: pater tenebrarum who wrote (35574)	12/21/1999 12:38:00 PM
From: Jorj X Mckie	Read Replies (2) \| Respond to of 99985

Heinz, My point is that maybe it isn't y2k related and that the bubble inflation and subsequent popping is seen as an unfortunate sidebar. (this is where I am leaning at the moment). Would the current fed policy help to stave off the failure of smaller banks and/or an LTCM style disaster? JXM

To: pater tenebrarum who wrote (35574)	12/21/1999 12:38:00 PM
From: dclapp	Read Replies (2) \| Respond to of 99985

heinz, >> i really think it's just a vague fear on the part of the Fed regarding Y2K... My hunch is that it's not a "vague" fear, by any means. I can't believe we'd have this sea of liquidity if the Fed didn't have damn good reasons to believe that y2k is a great threat to the financial system. My guess is that Greenspan had to decide "which horn to be gored with" and chose the bubble, in the belief that it was lesser of two evils. We'll see... IMHO, doug

To: pater tenebrarum who wrote (35574)	12/21/1999 12:49:00 PM
From: Craig Richards	Read Replies (1) \| Respond to of 99985

what is accomplished by inflating the bubble further ahead of the event? Haven't you been the one saying the Fed will not be able to avoid blame for a market crash? Perhaps the Fed thinks that pumping up the markets pre-Y2K and then cutting back on liquidity will cause a market crash that will occur without a lot of fingers pointed at the Fed. I don't really believe this scenario, but it fits logically to a certain extent. As long as they can't avoid a crash, they might as well engineer it to happen at a time when it will look like it's due to normal market forces.