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Gold/Mining/Energy : Gold Price Monitor
GDXJ 94.04+0.6%Nov 21 4:00 PM EST

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To: Hawkmoon who wrote (37716)7/24/1999 5:32:00 PM
From: Hawkmoon  Read Replies (2) of 116764
 
I have another question.

Here we have all of this discussion of the FED raising rates this fall and the US economy teetering on the edge of overheating as Asia recovers and Europe shows its economic strength.

But on the other hand we face all of these dire reports referencing how Y2K will cause a deep recession and drastic disruption and slowdown of business activity around the world.

The choices are:

An overheated US economy where the Fed has to contain domestic economic growth with higher rates.....

Or a sharply contracting economic environment where the appropriate response would be a lowering of rates in order to stimulate growth.

I just don't get it. How can both scenarios co-exist??

Which is it?

Or were Greenspan's comments and tone being directed at another audience across the seas??

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