VOLTAIRE'S PORCH-MODERATED Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : VOLTAIRE'S PORCH-MODERATED

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: synchro_fan who wrote (8086)	10/15/2000 9:57:19 AM
From: Jim Willie CB	Read Replies (2) of 65232

hard to use 1970's as an example OPEC raised oil prices 300% or some such shock do I think the Fed will raise rates? NO, but I think they want to in order to counter the higher energy prices that is the error they WANT to make I dont think the Fed realizes that they will need to LOWER rates in the next 2-3 months, or else face a slowdown somewhat more than they expect... they seem oblivious to the pain in Europe, which is firmly caught in "stagflation" ... Europe has raised interest rates (since US didnt lower) in the midst possible recession the Fed is between a rock and hard place... they want to raise rates to curb spending and growth, and to counter the higher energy costs... but they cannot since that would force Europe into a recession, and possibly us also The Federal Reserve is playing CHICKEN with the US economy... as GregM said, they are dismantling the engines that keep productivity strong and inflation low because they fear growth which they dont understand... namely, growth from the technology crucible the last irony is that late in an economic cycle, inflation shows up briefly as productivity engines are old, tired, and sometimes dismantled... the Fed has typically misread this signal each and every time, raising rates and ushering in a totally unnecessary recession... Greenspan has shown in many speeches that he realizes we are in a truly different situation and era... he has allowed the different engine to run long & hard for a few years... I hope he remains a believer... every speech he makes confirms his growing understanding of the new paradigm... we will see / Jim

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next