SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Politics : Ask Michael Burke
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Skeeter Bug who wrote (73175)1/10/2000 3:05:00 PM
From: valueminded  Read Replies (1) of 132070
 
Skeeter/Others:

Actually, I think rates go up, inflation goes up, but as long as the stock market goes up we are ok. The fact that reserves continually are added in order to maintain the "target rate" means interest rates are too low or demand is too high. Now since we saw little dropoff in demand even when the market was attempting a minor swoon last week, means that the demand side of the equation is relatively insenstitive. (imo)

Since Greenspan has latitude to play with rates, he will raise them. But he will not allow market to crash. (slow decline is his target) A slow decline will allow enormous amounts of money to make their way out of the market and into the money supply averages. This will accelerate growth of money supply averages and increase rate of inflation. Only means left to reduce the money supply will be to allow the bond holders to take it on the chin. This will be politically acceptable.

just my opinion on how it plays out.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News