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Strategies & Market Trends : ahhaha's ahs

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To: ahhaha who wrote (840)	1/23/2001 11:44:27 AM
From: ahhaha	Read Replies (1) of 24758

I had said in #840 that: The only way to drive the market higher is for the FED to pump, to buy securities outright, but they can't do that now because the economy is not that weak. FED isn't interested in my assessment of the economy. They just did their second coupon pass in two days. I also stated: If the FED did pump outright, they would pump up prices more than they would pump up output. Since they already blew their wad over the last few years propping up an economy begging to slow, they have to stay on the side of restraint whatever rate they fix. By restraint I mean no coupon passes, outright injections. They must be in agreement with Mundell. When AG went to the White House he told Bush that if the Administration got a good tax cut the FED would have to keep rates firm, but that is then. Apparently they will use this window of opportunity in order to pump as much as they can. The result will be rising general price level, but that is then, and this is now. The stock market can only rise on FED direct injection and that's what they're doing now.

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