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Strategies & Market Trends : Asia Forum -- Ignore unavailable to you. Want to Upgrade?

To: Zeev Hed who wrote (6744)	9/26/1998 10:58:00 AM
From: Sam	Read Replies (2) \| Respond to of 9980

Zev, "Banks are probably working overtime reviewing their lending portofolios and right now are not in the process of identifying new customers to lend out to, but debtors to take off their books." But, if this is true, does the Fed actually want to add to the credit crunch in much of the world? Or try to make it easier for loans to be serviced, and buy some time for these problems to be worked out? I am assuming of course that banks, funds and countries want to work out the structural problems, rather than let them fester for another few weeks, months, years. That may be a bad assumption. If it is a bad assumption, then the Fed should probably tighten, or leave rates steady, so the inevitable crash comes sooner rather than later, and forces structural changes by gridlock.

To: Zeev Hed who wrote (6744)	9/26/1998 2:47:00 PM
From: Frodo Baxter	Read Replies (2) \| Respond to of 9980

>Stitch, you outlined all the reasons why I think that the FED's will not relax this week. Your problem is that you think you know more than the market. The currency market, bond market, and Wall Street economists have all already completely discounted a .25 cut at the next meeting and another .25 by the end of the year. But Zeev Hed thinks the Fed will not relax. Well. I'll bet you $5000 that you're wrong. Or are your comments designed to be provocative rather than right?