Hi Augie: Mr. Greenspan is doing what Paul Volcker and other astute Fed chairman do. When it comes time to roll over T-notes and T-bonds they do what is necessary to create an auction that is heavily [over] subscribed. It's similar to an investment banker issuing an IPO or a bond issue...they want more than enough buyers to make the "sale" successful, because it's lucrative income for the investment banker. The Fed does the same. Also, the Fed steps in when necessary to slow down a runaway boom or top jump-start a sluggish economy: who wants massive layoffs, recessions, depressions? The price has been, for the most part, "moderate" inflation. And last, the Fed steps in when a bank or Long Term Capital that threatens to domino-topple other institutions...hurting us all. There's more, but enough for now.
