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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Dennis O'Bell who wrote (71448)	3/7/2001 11:45:07 AM
From: DukeCrow	Read Replies (1) \| Respond to of 99985

And the real danger of the Fed using interest rate cuts to stave off financial crises (LTCM, Asian currency, S&L, etc.) is that it forces people who are typically savers to reallocate their saved money into equities because money market and CD interest rates drop so low that they aren't producing competitive returns. In effect, the Fed, in order to bail out mostly corporate interests, forces individuals to take on more risk than they may want to. Ali