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Strategies & Market Trends : VOLTAIRE'S PORCH-MODERATED

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To: Voltaire who wrote (3009)9/22/2000 11:49:00 AM
From: Jim Willie CB  Read Replies (2) of 65232
 
expect in next 3 weeks for Fed to offer signals of movement to a rate easing posture !!!

Europe is in deep trouble
today the USTreasury announced we will participate with European central banks to support the pitiful Euro currency
this is significant since for months if not years we have supported a strong as hell US$
significant because Fed rate policy MUST BE COORDINATED with currency positioning

if the Euro rebounds somewhat, that will be good for exporting US firms and their stocks
if the Euro recovers sharply, that will NOT be good for US stocks generally, since it will undermine foreign held US assets after translating back to their home currency
we just need the Euro to get back to its status quo
"walking like a sick old socialist dork"

a view from the jackass tree
just a matter of time before the Fed begins to ease on rates
something like 2-3 months
they will not do anything until after the election
I see that event as an obstacle to get past

fwiw, Jim
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