Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : ahhaha's ahs -- Ignore unavailable to you. Want to Upgrade?

To: ahhaha who wrote (1206)	2/23/2001 3:09:53 PM
From: ahhaha	Read Replies (2) \| Respond to of 24758

The issue isn't whether FED will do what Wayne Angell thinks, but what anyone believes whether whatever FED does will address the problem. It won't. It only exacerbates it. FED did matched sales today to prevent the effect of their recent coupon purchases from creating an excess reserve position relative to existing excesses. Then they did a T-Bill pass worth $2 billion. That's as aggressive as it gets. They will have to sterilize the immediate rate effect on this action as well. If Angell is right, they wouldn't have done matched sales today. Of course, they may be only grooming the market as it were for another cut. It would be unprecedented to lock at 1/16 under. They had better be right about this guess and they had better make my 0% chance wrong, because if they are easing into an intrinsically strong economy outside of the superficial appearances, they will be embedding a major inflation problem. My guess is that this move would be wrong and that the recent overt pumping is wrong, and that they they will make us pay for their pretense to knowledge.