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

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To: Mark Adams who wrote (62815)1/29/2001 10:43:57 PM
From: oldirtybastard  Read Replies (1) of 436258
 
so the market is reacting to shocks, which the fed reacts to slower, but in the same way...yet the market also anticipates the fed, which these days will does not want to surprise or upset the markets (except for making intraday rate cuts 2 weeks after not making a smaller one), and the actions of the fed, while a supposed reaction to the market or to its own mistakes, also serve to fund activities which support the market. Do I have this virtuous cycle understood correctly? -g-

To be honest I read only the last few pages of that paper, but I thought his argument was akin to saying that insiders sell company shares in reaction to what the markets are doing with their shares, while of course knowing what insiders tend to know at the same time...in other words, how are you going to ever figure out anything quantifiable from that? Maybe I am off base here as I don't have time to read the whole thing tonight.
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