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Strategies & Market Trends : MDA - Market Direction Analysis
SPY 671.910.0%Nov 14 4:00 PM EST

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To: Box-By-The-Riviera™ who wrote (55064)6/22/2000 9:38:00 PM
From: Haim R. Branisteanu  Read Replies (2) of 99985
 
Joel, sorry to dissappoint you <GGGG>

Well I would explain why I think that as a result of FED policies oil prices are high.

Some history - a natural process of averting excesses was hindered by the FED in 1998 by lowering interest rates and supplying lots of liquidity into the end of 1999.

This process (the FED action) induces even more excess in North America and Europe. Recession was short and swift in SE Asia and as such the consumption of energy rose substantially.

Due to neglect of new oil prospects in 1997/8 and growing demand oil prices came up to their natural inflation adjusted price balance and then will overshot as the nature of markets are.

Would the FED stopped short of lowering rates and not inject so much liquidity in the markets, the world would had witnessed a economic slowdown or recession and after that a gradual recovery.

Therefore high oil prices are a direct result of loose money policy of the FED which induced also other CB's to do the same.

........ rest my case

Haim
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