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Pastimes : Ask Mohan about the Market -- Ignore unavailable to you. Want to Upgrade?

To: Sonny Blue who wrote (7226)	11/6/1997 11:07:00 PM
From: Bilow	Respond to of 18056

Federal Reserve Tries to Support the Market: At the short session of three hours on Thursday, October 31, well over seven million shares were traded, and the market made another good gain. The Times industrials were up 21 points. The weekly return of the Federal Reserve Bank showed a drop in brokers' loans by more than a billion, the largest weekly drop on record. Margin requirements had already been cut to 25 per cent; now the Federal Reserve Banks lowered the rediscount rate from 6 to 5 percent. The Reserve Banks also launched vigorous open-market purchases of bonds to ease money rates and liberalize the supply of credit. The boom had collapsed; the restraint that had been contemplated could now give way to a policy of active encouragement to the market. On all these happy portents the market closed down (i.e. didn't open) for Friday, Saturday, and Sunday. They were not days of rest. Brokerage offices were fully staffed, and the Exchange floor was open for completion of trades and also for straightening out innumerable misunderstandings and mistakes. It was noted on Friday a visitor to the galleries could not have told the market was suspended. The Great Crash 1929 by John Kenneth Galbraith page 120 -- Carl