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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 (1286)	2/17/1999 12:24:00 PM
From: Paul Berliner	Respond to of 3536

Fraga's rebuttal: biz.yahoo.com Krugman: web.mit.edu

To: Henry Volquardsen who wrote (1286)	2/17/1999 4:31:00 PM
From: Paul Berliner	Read Replies (2) \| Respond to of 3536

Interesting article on commodity prices: afr.com.au

To: Henry Volquardsen who wrote (1286)	2/18/1999 8:56:00 AM
From: Gersh Avery	Read Replies (1) \| Respond to of 3536

Hi Henry OK you say that funds are obtained by brokers from the banking system by way of broker loans. These funds that are supplied do not come from a vacuum. When these loans are taken out they drain liquidity reserves from the banking system. Banks must maintain certain levels of reserves. When their reserves drop below specific levels they must get additional reserves from some other bank. That had an impact on the fed funds rate. In the end the fed must take some action to keep the balance. I would suggest that fed additions and drains would show the footprints of large and fast cash movements within the marketplace. Gersh