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To: King David who wrote (407)	10/16/1998 9:34:00 AM
From: Oeconomicus	Respond to of 9677

KD, we may be stuck here until we get some Netgain news. Anyway, I'm not sure this rally will last. The effect, IMO, was exaggerated because it was a surprise (the timing, not the fact of a cut) going into option expiration. The Fed's rate cut between meetings tells me that they saw something indicating that the risk of recession is much higher than they thought just a couple weeks ago. Never underestimate the impact of a credit crunch. And, I seriously doubt that a half point of cuts to 5% Fed Funds is going to resolve much. In '92, they had to go down to 3% before bank's started making very many new loans. Bob