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To: ItsAllCyclical who wrote (82127)	12/19/2000 7:13:52 PM
From: The Ox	Read Replies (5) \| Respond to of 95453

Jim, I don't believe that AG cut rates twice between meetings to 'simply' prop up the market. AG cut rates because he had to prevent a worldwide meltdown that was about to charge past the point of no return. Many folks saw AG's action as a reaction to a falling US stock market. I believe the FED was reacting to the global financial crisis (which had little to do with the US stock market directly). AG is not here to 'save the day' for US stock market investors and those who think that's his job are way off base. His concerns are much wider in scope than those of the average US retail investor. We saw this today. If AG wanted to prop up the market, we would have seen a rate cut today.

To: ItsAllCyclical who wrote (82127)	12/20/2000 11:28:20 AM
From: hitsoft17	Read Replies (2) \| Respond to of 95453

JimL, your points regarding the past actions by the fed are of course correct. In regard to the notion that the FED won't support the markets, I contend that they will likely pay more attention than they have in the past. The Fed has no interest in a recession nor does the coming Bush Admin. That would spell a disasterous failure by both. It is my belief that if the markets don't turn quickly, then we will roll into recession faster than the FED can stop it because of rapid decreases in consumer spending on top of the rapid decline in corp spending. I believe the FOMC is watching this very carefully and if anything triggers an off meeting cut this will be it. I agree that if Mutual fund redemptions crank up and consumer spending starts to fall faster, the FOMC will need to act very quickly with an off meeting cut to prevent severe recession. In think they will, the issue is will it be fast enough. Also, some interesting patterns for some techs resisting the downward pressure, NSM, CY. May be time to add/nibble. Hitsoft17