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

To: energyplay who wrote (35083)	6/16/2003 12:59:10 PM
From: Ramsey Su	Respond to of 74559

It is comical how the same theme is repeated over and over. Why don't they just cut discount rate to zero now and see what would happen --- NOTHING.

To: energyplay who wrote (35083)	6/16/2003 4:28:05 PM
From: aknahow	Respond to of 74559

The cut will be 25 bp not 50. I believe the idea of a 50 bp cut is floated only to provide some protection of existing positions by being able to trumpet that the cut was not a big as projected. for example the dollar may rebound if the cut is "only" 25 bp and not 50. Treasuries may give back some gains to the extent that 50 b.p. was already built in. What is the cost of being wrong. Not much since many say 50% chance of a 50 bp cut and 75% or whatever of a 25 bp cut.