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To: articwarrior who wrote (4895)	10/31/1998 11:28:00 AM
From: Dipsey	Read Replies (1) \| Respond to of 14427

articwarrior - "The question I have is: If the fed would go so far to lower interest rates in order to help these mega companies and then the markets throughout the world climb so quickly..doesn't it seem likely that in order to straighten out all the hedging they would not lower the interest rate bar at this time in order for the hedges to fill up on the downside?" My question is: Was the Fed cut intended to boost markets and assist hedge funds? Or was it primarily a necessity to salvage the banks and bond markets by providing increased liquidity, with the boost to the equity markets simply being a byproduct (and not necessarily a desirable one, even as viewed by the Fed). To me a key aberration is Greenspan stating the market at 6000 was 'irrationally exuberant,' and yet he cuts rates at the 8000 level with the knowledge that this action is likely to drive it even higher. Should the bond markets not respond favorably to this last rate cut.. or even further cuts, what then? Regards, Dipsey