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To: accountclosed who wrote (51593)	12/27/2000 2:14:05 PM
From: yard_man	Read Replies (2) \| Respond to of 436258

thanks, AM. Does the collateral tell us anything? the instance Luc referenced had both treasuries and mortgage-backed securities So when 9 B is added via these repos -- the multiplier effect means that a very much larger amount has been added -- were the banks/dealers selling the securities to take full advantage to loan enough to keep the same low fractional reserve? These operations are very short term -- why are they even necessary? Also -- these operations do nothing permanent to expand the money supply as a whole, right?