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To: Zeev Hed who wrote (16914)	11/1/1998 12:24:00 PM
From: Haim R. Branisteanu	Read Replies (1) \| Respond to of 18056

Zeev, there was no danger of a meltdown at all. Market bounced from an oversold condition and were prone to retest the support levels. We would made higher lows in an ordinary fashion. Now we are in an euphoria mode again with negative fundamentals, and that is BAD!!! Again the FED acted intentionally to save a few and saving their "friends" in mind and that is their crime. Would highly suggest to read about mechanical/computerized arbitrage, pair trading and volatility selling. Aside read this and tell me if it is not inside trading practice which I asume is perfectly legal right??? FOCUS-Firms got early peek into secret LTCM books (Goldman Sachs and Merrill) biz.yahoo.com Haim

To: Zeev Hed who wrote (16914)	11/1/1998 12:45:00 PM
From: Enigma	Read Replies (3) \| Respond to of 18056

ZEEV - the owners of LTCM took a haircut as you put it - well and good - but the lenders to LTCM were the ones bailed out (unless I've got it wrong) The point I'm making is that there seems to be developing a new paradym - if you lend enough to a developing country, or a hedge fund, you will be rescued (FED and IMF respectively). Reward without risk? Not that the Fed can go on being a bail out agent for brokers/banks indefinitely.. I don't think you have taken into effect that it is not the .25 % cut which has achieved this new euphoria -but, rather, the fact that what is implied is a series of cuts to come. What happens, then, if these cuts don't happen? I read elsewhere that the Fed may ease way more - to 2% or by 2% - I can't remember - because of the $billions required by corporations to fix the YK2 problem (Ford alone $350million). Maybe the market in its infinite wisdom sees something positive in this. Have you seen those charts superimposing 98 on 29? We are now at the comparative recovery top - next little while will burst or confirm this one. E