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So here is a thought...


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#1 jjc

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Posted 21 March 2007 - 02:16 PM

The FED can not control liquidity anymore by pumping up interest rates. Creating to great an interest rate differential just increases carry trade driven liquidity... I'm not clear why all the Repo's the past few days... smooth things out?

#2 arbman

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Posted 21 March 2007 - 02:26 PM

Actually, I think it is to smooth things out, they are draining slowly now...