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Politics : Welcome to Slider's Dugout

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From: RonMerks10/9/2007 10:06:06 AM
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Republican Debate in Michigan at 4pm on CNBC.

Republicans will get to take the temperature of the disinfranchised middle class today as the Republican Presidential candidates debate in Michigan- which has like the highest unemployment rate, highest foreclosure rate and has taken a huge economic hit.

The Fed is setting banks up to be able to borrow short and lend long- PROFITABLY again.

Michigan today- may give a glimpse of where a few more states will be economically and perhaps politically- in a few months.

So much of this markets move and gold & silvers too, is riding on further Fed rate cuts. I think it's going to be awfully hard for the Fed to not continue cuts given it's an election year and that Hillary is a VERY formidable candidate.

I think the Fed should pause and want them to pause, but they will cave into politics and the necessity to get the yield curve back to easy money for the banks and they keep cutting.

They almost have to continue the cuts- because the effects of the cuts usually take 6 months to wind through the economy and the 2008 Presidential Election is now only a year away.

Hi-Ho Silver!

Ron
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