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Gold/Mining/Energy : Strictly: Drilling and oil-field services
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To: kormac who wrote (59835)2/5/2000 9:24:00 AM
From: dfloydr  Read Replies (1) of 95453
 
It is interesting to me that for almost every other day over the last year, the big worry has been "Will the Fed raise interest rates"?

Well, they have .. three times.

And the effect?

Nothing. Who cares what inter bank overnight loan rates are when stocks are going up 2% a day?

During this time, Greenspan's big concern has been inflated stock prices and his target has been to slow down speculation, or rather "overexuberance" in the markets.

Well? Hmmmmm.....

The other tool available to the Fed is the margin percentage.

Do you think a 10% shift in the allowable margin would cut back speculative market activity? Do you think it would pass unnoticed as have all three interest rate increases?

When?

Just after the elections would seem about right. That would throw the fireworks into the first year of the next presidency, and most presidential terms start out with some sort of economic slowdown.

Enough ruminating. Time to go for a hike.
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