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

To: tekgk who wrote (7996)	11/15/1997 10:52:00 AM
From: Jack Clarke	Read Replies (4) \| Respond to of 18056

Tekgk: Nice to see you back. Good info on FR, especially the part about the foreign operations not being subject to audit. What worries many of us also is the suspicion that they are directly intervening in the markets -- manipulation, in plain language -- to keep panic away and sacrificing the short sellers in the process, but perhaps only postponing and worsening the eventual crash. They seem to have the power to do this, since one of the FR's responsibilities is "maintaining the stability of the financial system and containing systemic risk that may arise in financial markets." See: bog.frb.fed.us So, it seems they have the right to manipulate the market. My only question is, are they? Jack

To: tekgk who wrote (7996)	11/15/1997 10:53:00 AM
From: Zeev Hed	Read Replies (1) \| Respond to of 18056

tek: I agree that some of the operations of the Fed are counter productive in that they imply that some people at the Fed know better than the market what is "good" for it. However, in recent times most such intervention have aborted spiraling disasters and in essence derive from the authority the Congress has given to the Fed. If, WE the PEOPLE, decide that this power is used onerously, it is up to us through our Congress to take these powers away. We the PEOPLE have just taken away from the IRS soome of the omnipotence it used to have, if we think the same should be done with the FED, we have an open forum to debate the Fed's misdeeds. I for one would suggest that since Burns, we were fortunate to have pretty good leadership in the Fed's. Not perfect, but who is? Zeev