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

To: Diana who wrote (16412)	1/27/2000 6:48:00 PM
From: John Pitera	Read Replies (3) \| Respond to of 63513

I think that the Fed was forced to add substantial liquidity to the system and to take other measures to err on the side of caution, in the event that Y2K disruptions proved to be more widespread and serious than they turned out to be. This impacted policy for over 6 months in 1999 and hence there was never a proper time period to drain the Monetary aggregate increases that the Fed pumped into the banking system to stem the global disruption and deflation of the 1998 emerging market crash. The "wealth effect" is real I know people who are going out and spending 25K on a shopping trip instead of 10K because they are making it in the market. and there is not margin involved. Increasing the Margin rate will affect stock prices, and I believe Greenspan is considering this option more seriously now. John