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Strategies & Market Trends : Currencies and the Global Capital Markets -- Ignore unavailable to you. Want to Upgrade?

To: Henry Volquardsen who wrote (1178)	1/26/1999 11:34:00 AM
From: Chip McVickar	Respond to of 3536

Henry, One of the more interesting back drops to the question of intervention by the Fed and it's maintenance of money supply is the effect that electronic currency activities have had on the abilities of the Fed to maintain it's position. Not only has it vastly speeded up the process, but also added a certain instability to the Fed's ability to practice the old "Blunt" tool methods of Volcker. I do not believe, atleast from what I've picked up, that these type of tools will work very well going forward....and this is a result of new era capital movements. The Fed has been fortunate to have Greenspan in this transition period. as he balances the older conservative ideologies with the newer realities of 1999. A quidebook to this unfolding era of international electronic currencies will be a lot different then the guidebook that was prepared durning Brenton Woods. He seems to carry both in his understanding of monetary policies. This struggle between conservative moniterists who have a tendancy to be protectionist and conservative liberals, [opposed to unlimited government control] and those who believe that self regulating forces of the market will provide correct balances...as found in Hayek's work, will continue as a major polarity in Fed policies. What direction the country takes after Greenspan, what continued effects these new financial presures apply and where the balance is gained will be a new reality for economic policy authors. With the present economic battlelines being drawn betwen Europe, Japan and America the need for dominance will be played out against attempts at coordination of currencies and world monitary polices for uniform purchasing power. Certainly protectionist polices, rapidly changing economic conditions and rapid capital flows will dominate the future. Thank You Henry for the look into the Fed My Best Chip

To: Henry Volquardsen who wrote (1178)	1/28/1999 7:24:00 PM
From: Gersh Avery	Read Replies (1) \| Respond to of 3536

Hi Henry .. It was a comment from me that triggered the request for further information about fed liquidity drains from Nancy and Chip. The last couple of days I've been thinking about fed actions from a different angle. That would be an effect rather than a cause. I had been looking at it as if changes in the market place took place because of available funds to through at the market. My new outlook looks at fed actions being a reaction to already existing sets of circumstances. If large amounts of stock have been sold off in the market and cash is set on the side, then the reserves of cash within the system would be higher than fed targets. Therefor the fed would drain to get the reserves back into balance. If this is the case then fed action could display large (but well concealed) market movements before they become well known in the market place. Your thoughts? Is there a symbol for fed funds rates that I could plug in and chart? Gersh