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To: clochard who wrote (81826)12/31/1999 11:34:00 AM
From: Lucretius  Respond to of 86076
 
it just injects more paper into the banking system. those who receive it simply jam it into whatever is moving, they don't care... during inflationary periods its commodities and they don't care whether its pork bellies or copper... right now.. its YHOO and CSCO...

by definition.. coupon passes increase supply of money and therefore rates rise.. Fed cannot control l-t rates by doing coupon passes. it works just the opposite way...