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To: Les H who wrote (122176)	9/15/2001 4:35:15 PM
From: Knighty Tin	Read Replies (1) \| Respond to of 436258

Les, Wow, we could become Japan overnight as far as rates go.

To: Les H who wrote (122176)	9/15/2001 4:36:49 PM
From: Les H	Read Replies (1) \| Respond to of 436258

nuclear war next smh.com.au

To: Les H who wrote (122176)	9/15/2001 4:46:09 PM
From: Tommaso	Read Replies (1) \| Respond to of 436258

I am afraid that the Fed will again (as in 1998, and with the supposed Y2K thing) act preemptively to counter a problem that has not yet appeared. Please understand that by saying "not yet appeared," I am certainly not referring to the loss of 5,000 people and the destruction of the physical facilties of much of the financial district. I just mean, that no one yet knows whether the financial markets can adjust without the Fed's adding huge amounts of money as they did, totally without need, at the end of 1999, thereby creating a real disaster, the terminal bubble. The SEC is planning to suspend its rules to allow mutual funds to borrow money to meet redemptions--in effect leveraging the market in a way that could cause a collapse if and when the funds try to pay off those loans, or when the banks demand payment. Up to this point I have never subscribed to the "plunge protection team" theory of market manipulation, but it looks as if it may really happen this time. My view is that this might provide short-term market stabilization, and perhaps even cause the market to rise briefly, if mutual fund managers use this new liquidity not only to refrain from selling, but to buy (probably index funds). Well, I certainly do not know what will happen, but I fear that the government agencies may set the market up for a giant whipsaw.