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To: Box-By-The-Riviera™ who wrote (97732)	4/24/2001 8:44:04 PM
From: pater tenebrarum	Respond to of 436258

well, it sure was a surprise for most that the first three cuts couldn't stop the selling for more than a brief interlude...if the 4th cut suffers the same fate, what's he going to do for an encore? 100bps? even more diabolically, what if there's an LLCF? watch this thing: stls.frb.org that little wiggle on top is already a danger sign for the market. the system is a liquidity junkie now...once money supply growth rates go to extremes, even a mere slowing in the growth rate can be fatal in an overleveraged system drowning in paper. especially when you HAVE to finance a huge current account deficit...after all foreign speculative funds are not in it out of the goodness of their hearts. i see the rate cut panic from purely that perspective...it is designed to assure the 'hot money' that liquidity won't disappear overnight.