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Strategies & Market Trends : Currencies and the Global Capital Markets -- Ignore unavailable to you. Want to Upgrade?

To: Henry Volquardsen who wrote (718)	9/28/1998 11:33:00 AM
From: N	Read Replies (2) \| Respond to of 3536

Sidestepping z's good setup of the currency issue for a tad, I have the following h.a.'ed conjecture I would like to try out on you all. 1. For a doom and gloom chaser, reading about Drysdale caught borrowing Treasuries from big city banks and selling them short [as close an example I could find like being long mortgage backed securities and shorting Treasuries, well not exactly], the ad hoc measure was the Fed doing repos with the banks who then paid the dealers and liquidity was restored...at same time, funds were drawn out of Treasuries tax accounts to offset the money supply increase and effect on interest rates and bond prices 2. So....if banks are financing Merriweather's defunct operation with overnights, and there are no offsets 3. Could it be, that tomorrow, we don't have to have a decrease in the federal funds rate? 4. Or did the banks just buy Merriweather out and that's that, no fed involvement, and we might get a directive to lower fed funds rate tomorrow... I want to bet [nonpecuniary] against the wisdom of the chattering classes that there won't be such a directive at this time... Last, is there any place mere mortals can monitor the fed funds market? Lighter observation: New t-shirt for the Chicago cubbies 'Every team can have a bad century...'