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To: MythMan who wrote (9478)	10/26/1998 4:56:00 PM
From: yard_man	Read Replies (1) \| Respond to of 86076

I have no idea. There is some evidence to support what he is saying concerning a spike in demand for short term borrowing that occurred at that time. Someone noted it here or on one of the other threads. Regardless of whether or not it is true -- Fed thought something very serious was up to lower before the next meeting. It's going to come back around. Wait till elections are over, if that long? As M^V pointed out -- the cut hasn't even had the official desired effect, narrowing the spreads the Fed was focused on.

To: MythMan who wrote (9478)	10/26/1998 5:04:00 PM
From: yard_man	Read Replies (1) \| Respond to of 86076

From the Economist article MMV posted: >>Thus, spreads on high-risk American corporate (“junk”) bonds nearly doubled between January and the eve of Mr Greenspan's surprise cut. New issues of junk slowed to a trickle: $4 billion in August and September combined, compared with a monthly average of $15 billion earlier in the year. Several new issues were postponed. Similarly, spreads on asset-backed bonds (such as mortgage-backed securities) have tripled since the end of August. Credit-card companies, and “sub-prime” lenders, which rely on selling bundles of old loans to finance their lending, especially to the less creditworthy, have found few takers. << This might be a very good short. Many of these type finance corps stock have already hit the wall (without much of a bounce). biz.yahoo.com