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To: JRI who wrote (95860)	4/18/2001 3:06:57 PM
From: sammaster	Respond to of 436258

maybe fed winked to the banks and said if u give out loans like i asked then ill cut rates... banks preceded to buy stocks for the last week then blammo...the rate cut... big profits for banks in return for giving loans.. fed has been asking banks for a while to keep lending and consumers to keep spending....i wouldnt put the above scenario past them...

To: JRI who wrote (95860)	4/18/2001 3:11:20 PM
From: patron_anejo_por_favor	Respond to of 436258

<<or would the banks still tell T no, and use their extra liquidity in the same old ways (market, money-market, home loans, etc..)>> JR1, this is the strongest case for the "this time its different scenario"...the banksters have ALL said they are tightening lending standards, while they have maintained their profitability by just the activities you have described (plus ramping the Spoos over the last week, but I digress). Lower rates will allow them to pick up the printed money...but they have better, safer places to put it than in some impaired business, like, say, Lucent, Xerox or any CLEC of your choice.