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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?


To: Philipp who wrote (26288)9/2/1998 7:31:00 PM
From: Joseph G.  Read Replies (1) | Respond to of 94695
 
<<If they only have 40 B $>>
There is a theoretical work by a former Fed member, who argues that buying Spoos is equivalent to buying treasuries (via arbitrage). If this tactic is used by the Fed for a liquidity infusion during extremely serious crisis - the sky's the limit (in terms of $, NOT SPX points; they surely woud not want to drive it up more than needed, just provide support). FWIW