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To: Dipsey who wrote (4897)	10/31/1998 11:57:00 AM
From: articwarrior	Read Replies (1) \| Respond to of 14427

The hedge fund boys caused the liquidity crunch. The feds way to solve this (Liquidity Crunch) was to lower rates. I agree with Steve that Greenspan is a very cautious entity who will not be so quick to lower the rates again. With the world responding so well to the financial "FIXES" I believe it would not be prudent to lower again without reflection on how their "FIXES" are working. The unusual precedent of in-between rate changes was un-called for and the Feds over reacted once again. Your question: Should the bond markets not respond favorably to this last rate cut. or even further cuts, what then? Look to what happened to Japan when they slashed interest rates to death and you have the answer. At one point there is a negative correlation between interest rate reduction and stock market increases because the answer lies in the question "Are people buying my products?"