Your Emails on the Fed's Open Market Operations

8/26/2005

David's Note: I've received quite a few emails regarding the Fed's open market operations article I wrote on 8/7/2005. As I continue to catch up with your emails, here's a couple of common questions first. I'll find time this weekend or early next week to answer other related email questions. Thank you for your patience.

By the way, I've also just got a chance to update our portfolio on clearstation.com. Please check for trade updates there. You can also click on David's Trade Talk ARCHIVE on the content panel for details.

Q: Enjoy your articles and especially the Fed Open Market Operations. I would greatly appreciate a link to the location of the actions of temporary O.M.O.'s. Thanking you in advance. --- C.R.

A: Here's the full URL to the Federal Reserve website. There you can learn everything you want to know about the open market operations.

http://www.ny.frb.org/markets/omo/dmm/historical/tomo/temp.cfm

Q: Am trying to ascertain how you calculate the weekly repo bids submitted? Going through the week of 7/22 using M-F is come up with 114 b. and only 198 for 7/29? --- Russ W.

A: When you click through to the Fed's website from the link I provided above, you can scroll down to the bottom of that page and find the link to the historic data. What you're looking for is the "Total Money Value of Operations (in $bil.)". That's the total of the accepted bids of that day's operations. Some days have more than one repo, and I've highlighted these days in the table below for your reference. Just add them up and you'd get the correct total as displayed in the table.

David's Note: Here's a nice email from Matt H. And, mises.org site is highly recommended for everyone to check out. Matt, I hope the info referenced above answers your question. Thank you for your encouragement.

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David,

I am frequent reader of financialsense.com and have read several of your articles. Today I visited your website and read "What am I doing?". I want to thank you for your efforts in helping others improve their financial literacy. I am a software consultant but have spent my free time the past couple of years trying to improve my financial literacy. My goal is to supplement my consultant income with investing income and eventually replace it.

I am interested in the data on the Federal Reserve's Open Market Operations that you referenced in Charts 1 and 2 from your Aug 7, 2005 article. Where can I find this information? I recently read "What Has Gov't Done to Our Money" by Murray Rothbard. This book has opened my eyes and has lead me to research what the Federal Reserve is doing. I believe that this information can be a great addition to my financial 'toolbox'.

Thanks again for sharing your financial education and insight. And speaking of sharing, you may already know of the site www.mises.org. It is where I found an e-book copy of "What Has Gov't Done to Our Money". In fact there are many great books on their website.

Regards,
Matt H.

www.davidyu.com

email: david_3011 @ yahoo.com

Space before and after @ was left intentionally to avoid spamming. Please remove this space when sending your emails.