Correction ends at bottom after 2pm Beige Book Wed 08/11/1999. Greenspan can not hurt Europe's Central Banks, so forget about the 6.23% US Treas 30 Year Bond and 5.5% Fed rate, the correction is now over, watch the Beige Book, and the Dollar to EURO and YEN! AOL will rebound faster than you can imagine...remember 2 days ago at $76, then $86, this news will push it back up to the 100's. Notice FREE which is Dixon's freeserver.com the free competitor to AOL.UK britain...well European tech stocks are not hurting like US internets, its over, the correction is over at least until August 24th FOMC and Greenspan's only choice then and there will be to plunge the US into a recession by creating the inflation he says he is trying to stop. There is no free lunch, there are no free Tech gurus...even stock options are a cost, and if there is wage inflation, then with a very limited size of high technology emloyment positions (year 2000 bug fixers for example) , well they all want to be paid well, very well, and if Greenspan inflating the Fed rate 5-5.5% to another 25 to 50 points doesn't just push the US 30 year treasury over 7%, and cause STOCKS DOWN, OPTIONS as part and parcel of employment, and pension plans WILL HAVE TO BE RENEGOTIATED!!! There is no free lunch, it will be either more stock or more cash....which way do you think internets will go, since more stock means more dilution? They will go OFFSHORE!!! To Europe!!! Maybe Asia. Greenspan has not thought that part out very well has he. And where will the economy be and go then? Thats why there will not be an increase on the August 24th FOMC meeting, but they will try to scare the hell out of the market from now until then. For now the market correction is over, but 2 to 3 days before August 24th one needs to be caureful, after August 24th its up just like after the October 1998 correction from the aftermath of the Greenspan induced Asian Contagion bail outs witht he IMF and the ASian banks. So for now, happy trails to you....good trading days ahead.
I am,
Truly yours,
-Crystal ball
P.S. If Greenspan does psuh for an increase, his automatic renomination to the Federal Reserve will not only be on hold, his position will end and a better suited candidate will follow...no one wants to have annoited the one guy who can skew the next election!!! |
