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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: Rational who wrote (12052)	11/25/1997 12:16:00 AM
From: Steve Byers	Respond to of 70976

HOw in the world does the Fed Reserve Bank of NY "let them have US $" speaking about the Japanese (BOJ)... let them have US $?????? let ME have some too while you're at it... the FED doesn't "LET" central banks "have" money... it might lend??? against what??? its not exactly common knowledge that the Japanese DO what they say... like the decades old trade disputes... or promises to OPEN their markets??? so now you think we will let them "have" US $??? because they promise to improve their controls in their economy relating to solvency and capital adequacy ratios???? I don't think so... the fed may REPO the securities, and reverse them back for a forward date... but that doesn't do much for liquidity... so I don't understand the underlying economics of what you think the fed has agreed to... please clarify this... thanks

To: Rational who wrote (12052)	11/25/1997 12:26:00 AM
From: Gottfried	Respond to of 70976

Sankar, you'll read this on Tuesday since you said GOOD NIGHT! That's soon enough. You mentioned... >They have recently made a mutual PACT with the Federal Reserve Bank of NY to let them have US$, obviating a need to liquidate their US Treasury security holdings.< That's very good to know. You also said... Both of the above moves effectively reduce the interest rate (or not increase it) and hence the stock markets are unlikely to plummet.< If you mean the interest rate in Japan I have a question: Since interest rate there is abnormally low (compared to US), does the Japanese stock market still respond to Japanese interest rate changes? GM