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To: Rif Kamil, M.D who wrote (72579)	10/16/1998 12:25:00 PM
From: ratan lal	Read Replies (2) \| Respond to of 176387

This is clear cut case of the fed helping the banks (and thereby helping hede funds) and their ridiculous lending practices. The banks would rather lend to a heavily leveraged hedge fund with NO guarantees than to individuals and small biz that work hard and provide personal guarantees and create jobs and wealth (Hedge funds dont create anything - they juts move money around).

To: Rif Kamil, M.D who wrote (72579)	10/16/1998 1:09:00 PM
From: Lee	Read Replies (1) \| Respond to of 176387

RK,..Re: Rate Cuts ... more pontification. When you said The "crisis in liquidity" may be more a function of banks having to seriously curtail their immediate and near-future lending patterns. If that happens we are almost guaranteed some sort of recession. The FED is moving to forestall this specific concern., you pretty much hit the nail on the head. Liquidity has been the main concern of the Fed and AG mentioned it in the last 3 of his public speeches and remarks. The problem is that the liquidity has evaporated for the large corporations and not so much for the smaller ones as evidenced by a Fed survey. Some excerpts of AG's remarks at the economists breakfast meeting a couple of weeks ago illustrate the main concern. archive.thestreet.com The Invisible Mouth: The Slowdown Forecast Lives by James Padhina Greenspan remarks Having seen this [spread] phenomenon emerging, we at the Fed put in a special survey of senior loan officers to see whether, in fact, the exceptionally benign results we have been getting pretty much through the summer had changed. And indeed, as I'm sure you know from publications we've put out, we have seen a major shift amongst the larger banks, specifically toward tightening credit standards, but it is essentially against larger companies. Liquidity protection, however, results not from a judgment, some conceptual insight, but rather a loss of knowledge. ... occurring is a broad area of uncertainty or fear. And when human beings are confronted with uncertainty ... they disengage. I believe Mohan also posted remarks by another Fed governor who specifically referred to liquidity being a problem. Regards, Lee