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To: Mike M2 who wrote (33902)	5/15/1999 1:08:00 PM
From: PaulM	Read Replies (1) \| Respond to of 116873

Fed Does Another Coupon Pass biz.yahoo.com That's a good thought. Govt news is often to prepare the public for something, not to reflect reality. At the same time though, you have to look at what the Fed is DOING, not what it is saying. What it appears to be doing (witness yet another bond purchase on Friday) is pursuing an inflationary policy, even in the face of strong inflationary momentum, to keep the bubble alive. Purchasing bonds with newly fabricated money will lower interest rates in the short run, while exacerbating both inflation and interest rates once that money works its way through the system. When you think about it the way the Fed is acting is amazingly irresponsible. And possibly unprecedented. Bond yields have moved a full percentage point, a move the Fed has not only not led, but is refusing to follow. Of course, Wall Street (and other cocktail aquaintances) have no problem with any of this. By contrast, Greenspan was certainly paying attention last year, when bond yields started falling and a chorus of commentary told him that the Fed could not ignore what the market was telling it.