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To: ViperChick Secret Agent 006.9 who wrote (46620)6/23/1998 11:32:00 AM
From: Gersh Avery  Read Replies (1) | Respond to of 58727
 
Lisa Re Fed liquidity;

There seems to be two time frames of response.

The first response is immediate .. buy on the news.

The second is when the cash shows up.

Most of these Fed actions are some sort of overnight action.

The action stated yesterday was for a nine day overnight addition of liquidity. Each night now for the next eight nights, the Fed will be adding liquidity to the banking system. This will make the rates for margin investment lower, which should cause more borrowing for investment, which in turn will bring the interest rates back up to an equilibrium. Then the next night the fed adds some more. You saw the results of last nights addition this morning.

Eight more days and counting.

Gersh