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To: UnBelievable who wrote (15159)	10/1/2001 1:33:44 PM
From: NOW	Read Replies (1) \| Respond to of 209892

From Moto at Bearforum.com re the Fed action: If the U.S. central bank expects the system to continue to finance positions in equity securities, for the purpose of conventional investment and trading that will absorb liquidation in the near term, it must accommodate such interests through an easing of monetary policy. What is not generally realized is that policy implementation in the form of a long-term system repo is indeed an easing of policy. What has also effectually transpired in this type of Fed intervention is the reprieve for certain depository institutions from the penalty assessed for failure to maintain the required level of reserve funds. Should the Fed fail in a moment of market instability to at least provide this measure of resourcefulness, some significant number of creditors would cease to provide the funds necessary to quickly absorb the heavy selling of shares that would otherwise continue with only the briefest of abatement until the arrival of genuinely attractive earnings valuations. - The Monetary Letter, Open Market Brief, September 10