DANIEL.DAVIES at flemings.com wrote:
>>I think there are cross purposes here. I never read Enrique as saying
that
>>the MMMFs were immune to a Fed tightening; I thought he was saying that
the
>>MMMFs were a secondary, uninsured banking system, and that money and
credit
>>figures which didn't take account of this sector were therefore flawed.
At 6:38 PM -0400 4/8/00, Enrique Diaz-Alvarez wrote:
>>If Noland is right, and his argument does sound more persuasive, the Fed
>>has effectively lost control over the US financial system.
>Doug
Just goes to show how wrong you can be. . . . .
Enrique, this can't be right. The Fed's means of control over the financial system is the interest rate, and they haven't lost control of that. The MMMFs are an *unregulated* banking system, in the sense that there's little or no prudential supervision of them. But that's a different thing.
dd
___________________________________________________________________________
_____
---------------------------------------------------------
This email is confidential to the ordinary user of the
e-mail address to which it was addressed. If you are not
the intended recipient, please notify the sender
immediately on (44) 20 7638 5858 and delete the message
from all locations in your computer. You should not copy
this email or use it for any purpose, or disclose its
contents to any person : to do so may be unlawful.
Email is an informal method of communication and is
subject to possible data corruption, either accidentally
or on purpose. Flemings is unable to exercise control
over the content of information contained in
transmissions made via the Internet. For these reasons
it will normally be inappropriate to rely on information
contained on email without obtaining written confirmation
of it.
----------------------------------------------------------
___________________________________________________________________________ _____
---------------------------------------------------------
This email is confidential to the ordinary user of the
e-mail address to which it was addressed. If you are not
the intended recipient, please notify the sender
immediately on (44) 20 7638 5858 and delete the message
from all locations in your computer. You should not copy
this email or use it for any purpose, or disclose its
contents to any person : to do so may be unlawful.
Email is an informal method of communication and is
subject to possible data corruption, either accidentally
or on purpose. Flemings is unable to exercise control
over the content of information contained in
transmissions made via the Internet. For these reasons
it will normally be inappropriate to rely on information
contained on email without obtaining written confirmation
of it.
----------------------------------------------------------