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Pastimes : Clown-Free Zone... sorry, no clowns allowed

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To: CYC who wrote (15013)8/30/2000 9:51:33 PM
From: Perspective  Read Replies (1) of 436258
 
It's more than just the Fed here. There is tremendous influence from the Executive branch as well which may be even more important in the four-year cycle present in our stock market. The President regularly holds back some discretionary spending, then blasts the economy with everything he possibly can in the year leading up to the election. It adds to the inflationary fires that the Fed eventually has to extinguish in the year following the election. Usually they are already burning by election time, but there is an implicit understanding that the monetary authorities don't mess with the political motivations of the party in power.

The absence of the discretionary stimulus from the Executive branch will contribute to next years' downturn.

BC
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