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Strategies & Market Trends : Stocks Crossing The 13 Week Moving Average <$10.01

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To: Bucky Katt who wrote (5956)4/2/2000 1:55:00 PM
From: James Strauss  Read Replies (1) of 13094
 
The Economy...
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William:

Your friend, the Economist, makes good points about the rate increases not being ahead of the curve:
Message 13316159

But the cumulative effect of those rate increases is yet to be felt... There is a 6 to 9 month lag time for each one of them to take effect... So, the final effects of the last two or three increases are 6 to 12 months away... By the Fall we should see a declining Economic growth rate... This should initiate a neutral to accommodative stance by the FED... What Greenspan doesn't want to do is have a repeat of 1987... So, I think we'll have two more 1/4 point rate increases before it's all over...

With growing international competition it's critical that the U.S. continue to be the world's productivity leader... I don't think Greenspan wants the U.S. to return to the much lower productivity days of the late 1970's and early 1980's... The U.S. would no longer be a world class Economic power if that happened... Greenspan, the President, and Congress knows that... If we don't lead, someone else will...

Jim
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