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.

Pastimes : Clown-Free Zone... sorry, no clowns allowed -- Ignore unavailable to you. Want to Upgrade?

To: UnBelievable who wrote (234002)	4/7/2003 12:14:11 PM
From: Tommaso	Read Replies (1) \| Respond to of 436258

Sure. All I said is that there is not some "team" consisting of Fed governors, the Secretary of the treasury, and assorted financiers, that looks at the stock market and says, "Uh oh. Have to prop it up." Some people imagine that there is contant manipulation and that the fed actually buys options on the indices.

To: UnBelievable who wrote (234002)	4/7/2003 12:34:20 PM
From: GraceZ	Read Replies (2) \| Respond to of 436258

It's like saying that the broker who lends you margin is trying to manipulate you into whatever market activity you are involved with. The Fed reacts to changes in the demand for funds. It's what they were chartered to do. RPs and their reverse are primarily done to keep the FF rate from rising above or below the the interest rate target. If you want to look at open market operations that are designed to change the overall money supply you have to look at coupon passes, or permanent additions.