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To: philv who wrote (76616)	9/16/2001 7:29:44 AM
From: Richnorth	Respond to of 116752

Thanks. It was an interesting read. EOM

To: philv who wrote (76616)	9/16/2001 8:49:13 AM
From: Tommaso	Read Replies (1) \| Respond to of 116752

Up till now I have not put much credence in the "plunge protection team" explanation of stock market behavior. But I do gather than in addition to all the liquidity already offered by the fed, the Sec is suspending various rules, including one that prevents mutual funds from borroing to meet redemptions. That means that the ogvnerment is allowing leverage of the entire market the way it was in the 1920s with the investment trusts (closed end funds) that used a lot of borrowed money. This could support or even raise the markets in the short term. But the loans would have to be repaid in some way some time, and that means selling stocks.