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Pastimes : The Justa & Lars Honors Bob Brinker Investment Club

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To: MrGreenJeans who wrote (12424)3/12/2000 5:10:00 PM
From: Wally Mastroly  Read Replies (2) of 15132
 
Mr. GJ, - A timely article. As Brinker just mentioned today, Al Gore may have reason to be concerned.....

...Beware the wrath of the Greenman! (My words <G>) That economist may not like being ignored...<BG>

As a caller is presently suggesting, perhaps Dr. Greenshades may want to send a 50 basis message at the 21 March FOMC announcement.

Brinker has suggested another way to send a message might be to raise margin requirements at the same time raising interest rates a quarter point.

Either way might be taken as targeting the high-flying NAZ & those speculators who are not listening....

If he's focusing on the broader market only, Brinker thinks he may stay with the quarter point.

Short term economic data could give the greenman the cover for a larger raise - if it starts to show inflation.

The gradualist 25 basis point nudge is not being taken seriously. The NAZ needs a sledge hammer to get it's attention.

-

I (again) vote for the 50 basis point method for 2 reasons. <g>

One: it's more dramatic (when most are expecting 25 points);

& Two: My recollection is that Greenspan said The FED will continue to 'study' the option to raise margins.
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