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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: LLCF who wrote (10896)	10/29/2001 4:14:42 PM
From: smolejv@gmx.net	Respond to of 74559

re Buybacks ... I guess Treasury is to take mortgage on Pensilvania Ave property, The Fed Building (what else?...Oh yeah, Fort Knox...), to pay down on their principal.Plus help sustain healthy real estate market - missing the other bubble, but wth let's make this an even bigger one -. on the more serious side: to be also on the giving, not just on the receiving side, gives treasury the latitude of getting rid of unnecessarily expensive posts and thus keep the total cost of the float down.Al? This is some lower-echalon MBA, with a computer under his/her behind. Heard a sad one today:"Unemployment being a lagging indicator yada yada yada..." You see the falling brick first, and then it hits, and it hits YOU. dj

To: LLCF who wrote (10896)	10/29/2001 7:12:48 PM
From: Moominoid	Read Replies (1) \| Respond to of 74559

When I learned econ (e.g. 1980 edition of Samuelson) we were taught that open market buying and selling actions were the main way of controlling interest rates with the discount rate as an anchor (that's why it is called the FOMC). Over time that has shifted somewhat in emphasis and other countries have mostly used active market transactions less than official interest rates. Maybe they are shifting their emphasis back again?