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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: kailuabruddah who wrote (29077)	3/22/2005 10:11:51 AM
From: russwinter	Read Replies (1) \| Respond to of 110194

Plunge alert, Fed fires warning shot? Fed only replaces 11.25 repo with 3.75 one dayer. ny.frb.org Fed funds will be pushing well over 2.75 and quickly moving on to next rate increase if this continues. 12.0 more expires Thursday and a big 17.0 TIO from the Treasury goes off Friday.

To: kailuabruddah who wrote (29077)	3/22/2005 10:45:43 AM
From: LLCF	Respond to of 110194

<This may be true, but what about hedging fuel costs?> I agree with you that some hedging when prices were clearly low is a good idea, but in realilty, the long run fact is that fuel is on ongoing input cost. I think it's smart for the airlines not to have to listen to sleazy investment bankers constantly trying to sell them products. Any meaningful length of time being hedged {say 5-10 yeasr} puts them at unreasonable counterparty risk IMO. If the government had a program like the "farm price" programs that would be different. DAK