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Wonder if Greenspan's maid new about this and who she is or I could get the
job by asking for less money.
Robert
Bob Fulks wrote:
>The timing of the expected rate cut seemed very clever. By announcing the
>cut a half hour before the close, Greenspan/Rubin must have known the
>market would jump and option traders of expiring options would have to
>cover shorts and buy into the close. Then the Dow would skyrocket so the
>reporting on the evening news would be very positive, convincing the public
>that the downdraft was over.
>
>Could this have been in their thinking?
>
>
>At 4:29 PM -0400 10/16/98, Timothy Morge wrote:
>
>>No forwarning. My wife was watching headline news--they just cut in and
>>said that in a surprise move, the Fed had lowered rates. My opinion is
>>that they gave Greenspan the go ahead at the ladt meeting to move again on
>>25 basis points if he felt it was needed. yesterday at lunchtime, he
>>apparently took a phone poll with the regional Fed Chiefs and most
>>actually asked fo him to exercise that 25 basis point cut. I would also
>>suggest that he probably called the White House and told the President, as
>>well as the Speaker of the House, that he would cut rates again IF and
>>When they agreed upon a budget--if you remember the last time they had a
>>budget impasse, Greenspan waited to cut rates until they had come to an
>>agreement. This is one of the few times he gets to hold those two to the
>>fire...
>
>>As for the floor, they have huge boards all around the pits, neon green
>>letters on black background...They have reuters and Telerate news and it
>>just flashes on the screens--those that were looking when the news came up
>>got a jump--otherwise, believe it or now, most get the news because a bank
>>or fund trader knows the news and picks up his direct line and tells his
>>or her floor guys.
>
>>Best,
>
>>Tim Morge
>
>>DLCRL@xxxxxxx wrote:
>
>>>Was there any forewarning yesterday that the fed was going to make an
>>>announcement ?? how were those that watch the news informed ? dale
>
>
>
>
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