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To: sammaster who wrote (123061)	9/17/2001 10:34:00 PM
From: pater tenebrarum	Respond to of 436258

i can tell you that in Europe for instance, the banks are actually TIGHTENING their lending standards concurrently with the ECB lowering rates , fearing that the economic downturn will impair their assets (they are quite right about that too). so a probable scenario here is that various financial institutions are suffering from a scramble for cash by everyone. the liquidity facilitates trading, and allows them to move otherwise illiquid paper, as well as fulfilling redemption requests. apparently there wasn't enough left over to jam the market...but possibly a bigger collapse was staved off. that doesn't mean that the market won't go wherever it needs to go to reach equilibrium, only that it is being delayed getting there, thus spreading the pain over a longer time period.