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

To: Tunica Albuginea who wrote (53477)	6/8/2000 11:47:00 PM
From: Wayners	Respond to of 99985

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. It just seems to me with regards to interest rates is that since the Federal Funds Rate is normally set by supply and demand (when the Fed is not engaging in Open Market Operations) that the market should be able to accurately set the level of short term interest rates on its own to reflect the supply/demand for Federal Reserve Notes. If short term interest rates "should" have been rising in Nov. and Dec. before Y2K then the market would have raised rates on its own even without the Fed intervening. In my opinion, I think that all interest rates should be free floating without Fed interaction.