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To: Ilaine who wrote (53661)	1/3/2001 7:29:20 PM
From: pater tenebrarum	Read Replies (3) \| Respond to of 436258

there has been zero liquidity in corporate bonds for quite some time now. no wonder, with default rates rocketing higher. the truth is that the system is so overleveraged, and so exposed via derivatives, that any market dislocation HAS to be fought by a panicky Fed, otherwise a systemic melt-down becomes a real possibility. i do believe they were urged by their member banks to go the whole hog in a surprise cut. they must have gotten real worried over some of the manure in their loan portfolios. there is some circumstantial evidence suggesting some prior knowledge by certain players, like e.g. the fact that calls remained firm in yesterday's downswing. i'm sure someone was 'saved' by today's action.