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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: J. P. who wrote (6344)	2/14/1999 1:12:00 AM
From: James F. Hopkins	Respond to of 99985

Hi J.P. Thanx it says it better than I could, but as you see, the Repos, make for more money and lower short term rates, hence ( margins are cheaper ) and the so called fair value in respect to futures lowers , thus it stimulates the market. On the other hand if the Fed drains liquid the cost of margins goes up, and fair value also gets higher. ----------- They did use the term Government Bank, and I think that is misleading it has a charter and it's separate from the Government, the 30 dealers have something like a franchise, & they get money cheaper than any one else, as it works out in my eyes the people who own the national debt are the ones who own the Fed Reserve and benefit the most from it's charter. Jim