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To: GraceZ who wrote (62733)	1/29/2001 4:25:30 PM
From: KeepItSimple	Read Replies (2) \| Respond to of 436258

How come every single mo-mo stock I watch moved less than 1 point in either direction today? Am I to believe that all the daytraders decided that they wouldn't move stocks in either direction, at ALL, even on the most volatile trash stocks, until the Fed decision? Achieving coordination amongst hundreds of thousands of daytrading investors would be close to impossible. The only other explanation is that prices in these issues are controlled by a cartel of sorts, who decided that it would be best to keep prices within a specific range. It's almost like tomorrow is expiration friday. What gives?

To: GraceZ who wrote (62733)	1/29/2001 4:28:57 PM
From: Archie Meeties	Respond to of 436258

where is all that money going if the economy has put on the brakes and is growing at zero? I think the hope here is that it will go to reinflate the bubble and consequently reinvigorate the consumer. IOW, the gdp is highly dependent on speculation in naztrash.

To: GraceZ who wrote (62733)	1/29/2001 4:38:23 PM
From: Mark Adams	Read Replies (2) \| Respond to of 436258

I agree with the observation that the ripples seem to be reinforcing each other, result in ever larger compensations. Not good for stability, the reported aim of the Fed. It would seem that if the demand for liquidity is high now, lower the fed funds rate further would likely further increase demand. I suspect from a historical view, we could say the fed increased rates to restrain an out of control situation until something broke. This allowed them to locate an area of greater fragility than the balance of the system. Then they lowered rates, striving for stability, long enough to get whatever broke cleaned up. (we are in this phase now, and don't know how long cleanup will take. may not know what broke.) Now a smart doctor, after cleaning up what broke during the first stress test, would stress test again, and repeat the cycle, until the excesses were weeded out. Edit: This high demand for liquidity could also be a sign that current income cannot finance the current debt load without constantly rolling over debt, which would be very bad.