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Strategies & Market Trends : VOLTAIRE'S PORCH-MODERATED

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To: Boplicity who wrote (22612)12/7/2000 10:48:24 AM
From: Jim Willie CB  Read Replies (1) of 65232
 
Louie Navallier goes out on limb, predicts Fed rate cut on Dec19th

GroundhogMan Grinch Greenspan was far too plain on Tuesday

the need is far too clear

a 1/4% rate cut would do wonders to the financial markets
it would alleviate a large imbalance between FedFunds yield
and the shortend bond market yield

while it is not the responsibility or interest of the Federal Reserve to alleviate selling pressure in financial markets, it IS their responsibility to avoid creating conditions for stress in the bond market... I point to BOTH the discrepancy between FedFunds yield and shortend maturity yield, AND the corporate bond yield spread visavis the USTreasury yield

at same time, such a small move would allow Greeny to maintain his pride and not look as though he is on any credit market leash

he has deviated seriously from the credit market
by the way, I see no yield curve inversion anymore
it is flat as hell, a neutral indication

the FedFunds Futures are indicating 2-3 rate cuts by summer
but a low probability of a rate cut either Dec or Jan

/ Jim
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