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To: MichaelW who wrote (68559)	10/1/1998 12:04:00 PM
From: SecularBull	Read Replies (3) \| Respond to of 176387

The catch-22 of a fed rate cut- Since they cut, they admit a problem is potentially coming. If they didn't cut, the market would have seriously sold off, since a rate cut was already priced into the market. Since they didn't cut as much as some had hoped (50 basis points), the market is tanking anyway. Coupled with Japan's 12 year market low, the world markets sold off over night. Now we also have to be concerned about the over Long Term Capital-type hedge funds that may also be on the verge of collapse. Eventually, the liquidity that bailed out LTC won't be available if this keeps up. Furthermore, rate cut or not, people aren't interested in sinking cash into an uncertain market, starving liquidity further. Watching the dog be wagged by the tail, LoD