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

To: Wayners who wrote (53422)	6/8/2000 11:24:00 PM
From: Tunica Albuginea	Read Replies (1) \| Respond to of 99985

WayneVan Scoyoc, what Al did to inflate y2k is avoid raising interest rates when the " Naz Wealth Effect fireworks " where in full bloom last Nov. Dec. Almost like Nero watching Rome burn, :-) TA Message #53422 from Wayne Van Scoyoc at Jun 8, 2000 4:13 PM ET Whatever Federal Reserve notes the banks took in preparation for Y2K they exchanged for Treasury's--Notes, Bills and Bonds that they already had as reserves. Once Y2K fears were past, banks then exchanged the Federal Reserve Notes right back for their Treasury's. Thats how it works. This had no long lasting effects on the money supply. I don't know if there was even enough demand for the banks to actually execute the maneuver or if only plans were drawn up for quick Treasury/Federal Reserve Note exchange in case there was a run on Federal Reserve Notes from hoarders. I know the Fed printed a lot of Federal Reserve Notes to meet such demand but in reality nobody ran on the banks and I would submit that no appreciable ammounts of those printed Federal Reserve Notes ever hit the streets.