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On Fri, 16 Oct 1998, Yuri K 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?
I heard something similar, that the surprise rate cut was designed to bouy
the market for the hedge funds which would unwind in more favorable
conditions. Then expire. Way clever.
- hacker
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