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Strategies & Market Trends : Piffer OT - And Other Assorted Nuts -- Ignore unavailable to you. Want to Upgrade?


To: Jorj X Mckie who wrote (11352)12/31/1999 1:24:00 PM
From: The Phoenix  Read Replies (1) | Respond to of 63513
 
Yes... that would be the effect of raising the rate and buying back notes... in effect giving the banks more money to loan but pushing the loan rate up. So COB is higher but more businesses can participate.

I do understand the COB issue and how this impacts investment. However, I'd like to understand how the effect of increasing M2 money supply (through the selling and buying of notes) makes it's way into the system quick enough to effect short term investment, and to be honest, how it translates into valuation of an existing public going concern. OK.. so I'm confused.... Is Tom the man???

OG