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To: velociraptor_ who wrote (19007)	11/1/2001 6:31:40 PM
From: sandeep	Read Replies (2) \| Respond to of 209892

Why do you think that lending money to uncle sam for 10 years is riskier than equities (or not worth the risk)? After all, one can lose a lot of money in the equities than by lending to the most powerful nation on earth. When the 30 year bond was floated in 1977 (I think), the state of the country didn't look too good, now it does. SO, what's wrong with eliminating the instrument if it doesn't make sense paying higher interest rates? Don't you and I do that all the time? Granted, too much liquidity is being pumped in right now. However, these are risky times, so, a short term fix is ok. Bailing out govt can be a good thing IFF proper safeguards are insisted in return. Just imho.

To: velociraptor_ who wrote (19007)	11/1/2001 8:52:38 PM
From: Mike M	Respond to of 209892

Velo, I think its a pretty big stretch to expect 30 year treasury bond money to matriculate to the equity market. Far more likely that the money works into CMO's, corporates and other fixed alternatives. I don't disagree that the 30 year treasury has been a tool of the inflation watchdogs to keep the FED in line. Perhaps the FED and the treasury are colluding here but I think it is more a case of acknowledgement of a diminishing demand for the 30 year. I'm not a fan of the decision, but don't see this move as a conspiracy. Perhaps the FED's attempt to reflate the economy won't work but you can't blame them for trying. It's in the job description.