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Non-Tech : The Critical Investing Workshop

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To: Voltaire who wrote (15890)4/23/2000 12:08:00 PM
From: Jim Willie CB  Read Replies (1) of 35685
 
I see the FED now with contradictory monetary policy now

A. they hike rates in face of tight labor market, heavy continued retail spending, >5% GDP growth, thus restricting what they see as unsustainable growth

B. they add liquidity to the stock market underpinnings, in form of S&P/NAZ futures contracts, thus creating a floor to prevent a stock panic

the FED openly declared last late autumn to be adding liquidity to the system as Y2K unfolded... now they are reversing that policy, and must balance contradictory measures as they bring the reverse to an end

what a tough job
rather than "unsustainable" the growth is more "not understood"
/ Jim Willie
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