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To: Tommaso who wrote (154063)	3/1/2002 11:50:40 AM
From: Lucretius	Respond to of 436258

could be...

To: Tommaso who wrote (154063)	3/1/2002 12:26:28 PM
From: GraceZ	Read Replies (2) \| Respond to of 436258

That huge spike up around September 11 was not all the FED's doing. A lot of it was caused by autonomous factors. You have to remember that the stock market was closed and airlines were down as well as communications systems that were needed to clear positions that are usually cleared on a daily basis. The float zoomed up and then contracted just as rapidly as these communications systems came back online. You have to understand that as people liquidate positions in the stock market, assets that were stock are now converted to currency equivalents. Its the FEDs job to make available the money for the banks to increase their reserves necessary to back these liquidations. Its all covered here in the FOMC's 2001 report under a special section covering Sept 11 operations if you can stand to wade through it. It'll give you a better understanding of what the FED does and why. mywebpages.comcast.net