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To: KyrosL who wrote (67762)	2/14/2001 4:58:09 PM
From: sammaster	Read Replies (1) \| Respond to of 436258

re:draining of reserves so despite lower rates banks are unwilling to lend cuz of default risk or borrowers unwilling to borrow cuz they have too much debt?

To: KyrosL who wrote (67762)	2/15/2001 7:31:24 AM
From: flatsville	Read Replies (1) \| Respond to of 436258

If the market wants more money, the fed funds rate rises above its target and the fed pumps to bring it down. If you could show (in graphical form) how the fed fund rate rose above its' target prior to y2k I could believe that the liquidity orgy that began in Nov. and ran through about the first week of Jan. was actually related to rates. If not, it was just Uncle Al reacted to a shock, perceived or real. IMO rates and liquidity are decoupling as Uncle Al is increasingly pushed into the Fire Chief role.