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To: B.REVERE who wrote (56579)	10/28/1998 5:13:00 PM
From: Lee	Read Replies (1) \| Respond to of 58727

BR,..Re: I was referring to the s&p futures which are highly manipulated right after the market closes and right before it opens. It is true that the overnight session of the S&P futures has seen increased volume on some occasions lately but there is still not a good correlation between overnight markets and daytime markets. Furthermore, the volume on those two sessions for overnight trading couldn't swing the market. Look at the links below which show volume for the dates you mentioned, both for overnight and daytime sessions cme.com 7510 vs 239365 It's hard to believe the 7410 on the evening session could sway the 239 k on the day session. cme.com 12708 vs 159840 Also, apart from the fact that direct buying/selling in the futures market is not in the mandate of the Fed, it seems unlikely that the Fed would would take that route given the lack of correlation and the fact that other methods, within their mandate, provide better control. As far as the economy, layoffs have happened all throughout this expansion, even last year in the face of declining unemployment numbers, ex. DEC, T, and others. Getting axed after 15 years on the job is nothing new to the US worker. While it may dampen consumption temporarily, if the unemployment rate stays at the same low level, and if wages continue to increase, the consumer, who accounts for 68% of the GDP, will be back. I can link some charts on the employment numbers if you like. As For Crudele's remarks, specifically A bank analyst who I trust says financial records show that Bankers Trust's so-called leverage ratio on loans fell to 2.9 percent - below the 3 percent minimum allowed by government regulations. Back in June, the Fed warned the banks about their lending practices and discussed the possibility of raising margins to deter this practice of easy lending. (Can provide a link of this directive if required). As for Mr. Cruele's final remarks about investors being on their own, I thought we always were. Respectfully, Lee