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Technology Stocks : Amazon.com, Inc. (AMZN)
AMZN 249.14+0.3%Nov 11 3:59 PM EST
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To: GST who wrote (65182)6/28/1999 4:48:00 PM
From: BGR  Read Replies (1) of 164684
 
GST,

I do not follow TA, I am strictly a FA person. But IMHO in the long run rates reflect one and only one thing, which has nothing to do with charts. It is the balance between supply and demand for credit on one hand and money supply and inflation on the other.

Given a constant money supply, if inflation remains a low constant or goes further down but the economy continues to expand and hence lack of balance between supply and demand of credit pushes nominal and hence real interest rates too high, the Central Bank is supposed to adjust money supply growth upward (by buying back Treasuries, for example) to bring the balance back.

-BGR.

PS: My earlier note got squided, hence merging in with this note.
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