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To: JRI who wrote (123396)9/18/2001 3:53:01 PM
From: clochard  Respond to of 436258
 
A better question is: does the fed really set interest rates or just follow them? When there's a flight to money market funds like this year, the market bids up the price of the short end treasuries. Bubble boy simply follows along with his cuts and becomes a demi-god. When the run on the dollar begins and investors drop U.S. stocks and bonds, market rates will go up and Bubble boy will have to tighten or he'll loose a fortune lending at the current rate.



To: JRI who wrote (123396)9/18/2001 6:23:03 PM
From: pater tenebrarum  Read Replies (1) | Respond to of 436258
 
so far, the indicators i am watching to keep track of this, are also still dipping toward down, in spite of the selling in the long bond. but one should be watchful now...they're really printing up in a few days what it took several months to print before, and they weren't exactly slackers before as you know.