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Is there really a CCT?



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Early Thursday things became so serious, with key stocks down huge amounts,
that apparently the Fed's rumored "Crisis Control Team" (CCT) was brought
out
to produce a market rally.  Suddenly, within 45 minutes, the NASDAQ
Composite
rallied from a loss of 66 points into plus territory.  This produced big
short
covering, and strong gains by the close.
I believe that Friday's negative Labor Report was already known to the Fed.
They were fearful that if a rally were not produced, it would cause a market
crash on Friday.  This way, when Friday's numbers were announced, the stock
market's reaction was milder, although bonds plunged once again.
In the credit markets I hear much more about the potential Y2K problem.  As
I
wrote in Bert Dohmen's WELLINGTON LETTER a number of times, it's not the
real
problem, but the fear and uncertainty which will produce huge liquidation of
stocks.  The big money will not wait until December to sell.  They're doing
it
now. In our PRIVATE PORTFOLIOS program for mutual fund investors we went
into
100% cash this week.  I recommend you do the same.