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Pastimes : All Clowns Must Be Destroyed

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To: AllansAlias who wrote (31189)5/4/2000 2:07:00 PM
From: pater tenebrarum  Read Replies (1) of 42523
 
quite right. in fact, since corporate debt is at an all-time high (both absolute as well as relative to equity, GDP and every other yardstick you can think of), higher rates are now especially bad for stocks.
i agree btw. that the 25bp. scenario + clown rally might come true. it's an election year after all, and since Al is printing money in amazing quantities and at incredible speed, it doesn't really matter where he bumps the funds rate to. it's just a face saving exercise anyway.
unless inflation data forces his hand, he's going to try and keep his gradualist shtick going as long as possible.
agreed also that 50bp. would not be welcomed by the market, unless there's a lot of soothing mumbo jumbo going with it.
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