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Technology Stocks : Amazon.com, Inc. (AMZN)
AMZN 244.41+0.6%Nov 7 9:30 AM EST

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To: BGR who wrote (64854)6/27/1999 5:54:00 PM
From: GST  Read Replies (1) of 164684
 
BGR <People will buy houses and cars, sure, but at a different rate as interest rates change> The initial impact of a tightening will be to increase the rate of home buying as people seek to buy before rates go higher. The Fed is a player in the market -- but the market is the ultimate arbiter of rates. I don't think there will be any meaningful impact on growth until we see the long bond above 7%. A 20% drop in the S&P however would bring us down to something like 3% growth. Three tightenings this year should do the trick. Trouble is, the end of the year will be a lousy time for tightening. This is the case for half a point now and another 1/4 point in August.
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