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Strategies & Market Trends : Steve's Channelling Thread -- Ignore unavailable to you. Want to Upgrade?

To: Jdaasoc who wrote (9762)	1/3/2001 6:12:17 PM
From: pompsander	Read Replies (1) \| Respond to of 30051

John and Thread....after reading the Fed press release I was struck by the reference to the Discount Rate. Sure, it was only dropped 1/4 point today vs. the Fed. funds rate, but to the banks the discount rate is a big deal. The statement that the Fed stands ready to drop this rate furthere in the future is very telling to me. I wonder if the first major whiffs of "bad loan fever" started wafting up to the mighty Al. Too many dot.coms with too much money being pushed at them, coupled with a general slowdown in brick and morter companies......coupled with some nasty speculation by the banks in capital markets activity. Anyway, Al has always been the savior of the banks. Maybe the timing on this move had less to do with the economy, per se, and less to do with stocks and more to do with the critical financial underpinnings of the banking system.