Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Strictly: Drilling II -- Ignore unavailable to you. Want to Upgrade?

To: Jim Willie CB who wrote (21078)	10/31/2002 5:36:31 PM
From: isopatch	Respond to of 36161

Yet another gimmick from Sir Alan...... "Knight of (Market) Bath"<g> As more banks become insolvent, FED responds with a 2 tier policy for the emerging 2 tier US banking system. Iso <<Fed Approves Big Changes in Bank Lending October 31, 2002 10:52:00 AM ET WASHINGTON (Reuters) - The U.S. Federal Reserve on Thursday approved sweeping changes in the way it makes short-term loans to banks, lowering hurdles to borrowing but raising the cost of the loans. ``The measure represents a technical change in the discount window policy only and does not represent any change at all in the overall stance of monetary policy,'' Federal Reserve Board Governor Edward Gramlich said of the changes that become effective Jan. 9, 2003. Under the revamp, approved by the Fed board on a unanimous 7-0 vote, banks in sound condition will be able to borrow from the central bank at a so-called primary rate that would initially be set 1 percentage point above the federal funds target, instead of at a discount rate that historically has been below the federal funds rate. Afterward, the primary rate would be set by the Fed board using the same procedures that have been used to set the discount rate. In addition, under the revamp, a so-called secondary rate would be set for less-sound banks. That rate would be initially 1.5 percentage points above the federal funds target. Â© 2002 Reuters>>

To: Jim Willie CB who wrote (21078)	10/31/2002 10:46:45 PM
From: crustyoldprospector	Read Replies (1) \| Respond to of 36161

Jim, it looks like this dollar decline is driven by the perception that the FED will cut rates. That's the balloon that got floated, anyway. But IMO the smart money is betting the FED holds rates steady, giving the dollar will get one last pop and shithammering gold ... hence the drop in gold stocks today. This is going to be some kind of head-fake ... it's gonna look like the real thing, and it's gonna scare gold longs. Just guessing. crusty