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Politics : Formerly About Applied Materials
AMAT 268.17+0.1%Dec 8 3:59 PM EST

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To: Gottfried who wrote (38930)10/28/2000 12:45:27 PM
From: 16yearcycle   of 70976
 
"Time to get shots"

Yes. The Fed seems to feel hamstrung by equity speculation and oil prices. In retrospect, they may have done everything right until they kept their forward bias at the last meeting. And it is safe to say that they did this due to oil, and they didn't want another year end run in the nasdaq to start then, fueling 4th quarter gdp.

All very sensible. But now the equity bubble has deflated all the way to peg's of 1.0 from 3.0; our economy has now slowed dramatically; the dollar is WAY too strong; 2000 cap gains tax receipts are going to stun the government(are they totally asleep on this issue?); Asia is weakening badly, as are the European markets; productivity gains are at risk with a tech slow down and vc money is drying up to feed the boom.

I think that's about everything. Only oil is left as an excuse to not pump the money supply up.

I think that they will increase supply in the report that comes out late next week. This will be the green light:

stls.frb.org

They don't need to lower rates yet, but they bettter increase supply now.
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