Dan M wrote: > For example, do you really think the odds of GE defaulting on 1 day paper is > significantly higher than it was 2 weeks ago? > You persist in thinking that this one factor should determine the price of money in the market. But in all markets the price is determined by the balance of supply and demand. If the credit-worthiness of G.E. remained exactly the same, but market conditions changed, the price that G.E. gets charged will change as well. This is no different from what you or I would encounter if we apply for a mortgage. My credit-worthiness might be exactly the same as it was last month, but if the market rate has risen, I will pay more for my mortgage. That is why many people decide whether or not to buy a house at any given time.
Now, that presumes some degree of competitiveness in this market. One could argue that this is not a competitive market, and that therefore the price is not a good indicator of fundamentals, but in that case there is no longer any reason to even think about this kind of policy to begin with. Regards, -- Kevin B. O'Brien TANSTAAFL [EMAIL PROTECTED] Linux User #333216 How far you can go without destroying from within what you are trying to defend from without? - Dwight D. Eisenhower _______________________________________________ http://www.mccmedia.com/mailman/listinfo/brin-l
