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Technology Stocks : JDS Uniphase (JDSU)

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To: bodie who wrote (18487)	2/13/2001 10:37:34 PM
From: t2	Read Replies (2) of 24042

My point is that he will not let the market decline continue since it will hurt the economy. Today's reaction was not good and if it continues, he will cut rates quickly to send the message out. In that article: "He's trying to do two things in his testimony," said Irwin Kellner, chief economist for CBS.MarketWatch.com and the Weller professor of economics at Hofstra University. "He's trying to bolster consumer confidence and dampen expectations about how much and when rates will go down." I disagree with this economist. I think AG wants to bolster consumer confidence and still cut aggressively! He does not want the two ideas to clash....ie..why cut aggressively if things getting better? He wants assure things are fine but also assure the FED will be on their toes. He is a believer in taking out an "insurance policy" when talking about the need for tax cuts and I believe he feels the same way about interest rate cuts. The fact is there is so much room for cutting considering inflation is low----so why not cut. My point is that if he sees the market misunderstood him today (ie..gradual cuts) and deteriorates, he will make a statement sooner rather than later by his actions. He is really concerned about the market; in particular the Naz. How does rate cuts help the Naz....it gets the money out of those huge --money market assets that are paying a decent return thanks to the high real rates (ie. adjusted for inflation). He wants risk taking to increase a little---invest in markets. I don't think he will be a gradualist as indicated in that article and also stated by "jmanvegas" in his post. I think he has learned a lot from the big rate increases and won't want to make the same mistakes in a being gradualist in cutting. just my guess (or hope)

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