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

To: Oeconomicus who wrote (26306)	9/2/1998 11:02:00 PM
From: Joseph G.	Respond to of 94695

Don't listen to suckers like cramer ... -g- The Fed buys treasuries (outright) to inject credit into the banking system. Instead, they can just buy Spoo, and keep it, and settle at perspiration, if they so desire - they write the check out of thin air ... No arbitrage by Fed, private arbitrageurs will arbitrage Spoo vs interest rates, eventually (not necessarily in one step). The Fed achieves the same goal - inject credit into banking system, but by using different instrument. PPT mandate is not to "support the markets", but to "ensure orderly markets" - of course, how one interprets "orderly markets" may differ ...