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Technology Stocks : ADI: The SHARCs are circling!
ADI 273.76+0.9%3:59 PM EST

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To: Scrapps who wrote (2635)1/30/2001 6:06:17 PM
From: WTSherman  Read Replies (1) of 2882
 
<you WT remind me of the guy who started running when a earthquake hit here. We asked him a simple question (Where are you going?) he had no answer other than he was scared.<

Please spare me the pop psychoanalysis. The Fed is trying to walk a fine line. On the one hand they WANT a slowdown. A boom as long and robust as we've had creates huge inefficiencies. Wringing them out is part of the process of keeping the economy on firm ground. The last thing that AG wants is to see a very tight relationship between the stock market(particularly the NAZ) and consumer confidence. Over an extended period of time this becomes a sort of pyramid scheme. So, freebees on rates aren't something they'd do unless they were really worried.

On the other hand, the Fed is political animal and it knows that it can't risk a serious deterioration in the economy. So, they need to keep moving interest rates lower until they see signs that they are getting growth.

These two things working against each other are what will keep the Fed from unexpected actions. The only reason they would not adhere to that plan is if they think things are getting out of hand(on the downside). That would be more negative than positive for the market.
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