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To: TGPTNDR who wrote (32387)	3/21/2001 8:15:13 AM
From: niceguy767	Read Replies (1) \| Respond to of 275872

TGPTNDR: "NG: Re: <Assuming long rates remain as is, I can't imagine why a 150 basis point drop in short rates wouldn't assist the markets greatly!!! > The problem is that long term rates reflect forward inflation sentiments and vary inversely to short term rates. Thus your 'Assuming...' cannot be." Not sure what you mean...30 year bond rates at %.3% don't hint of any perceived inflation threat as far as I can see...The short rate is in some ways a manufactured rate with one determinant being fed policy...Short rates are currently about 150 basis points higher than they should be vis a vis long rates...The fed should waste little time in addressing this rate imbalance, imho!!!