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To: Gersh Avery who wrote (2811)5/7/1998 7:01:00 AM
From: smolejv@gmx.net  Read Replies (1) | Respond to of 11051
 
My reading of these isolated, context-less ("we-dont-have-a-clue") happenings is that FED is already taking active steps to take care of the money supply. While the interest rate is the prime handle they have available, there's tons and tons of other instruments they are (again, actively) using. The important thing is trust - actually US should change the bills to say "In God and Fed we trust". So far it looks like they know what theyre doing.

My concern (again) is that they may be mopping up the excess cash from the floor in the living room and at the back the Toyota pickups are pouring the liquidity back in. So? Watch the Yen/$ exchange rate.

DJ



To: Gersh Avery who wrote (2811)5/7/1998 7:40:00 PM
From: Chris  Read Replies (1) | Respond to of 11051
 
Gersh, RE: The Fed and the flow

Thanks for the link and the explanation. I have heard a rumor that the fed may try to adjust the Margin requirement. I didn't know they could do that.

chris