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Strategies & Market Trends : MDA - Market Direction Analysis
SPY 681.44+1.6%Nov 10 4:00 PM EST

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To: HairBall who started this subject2/13/2001 11:39:46 PM
From: OWN STOCK  Read Replies (1) of 99985
 
Need a kick start...

From an engineers perspective on control loop theory...

IMO, we need to see a massive cut in discount rate to get the recovery kick started...maybe to as low as 3%.

This is due to "delay" of purchases (lag) in a down economy, and "rush" (lead) of purchases in an up economy.

It is inherently a non-linear system.

Nonlinear (essentially inverse) control will result in much better control...look how relatively fast the market "stopped" compared to how it "roared"...

The FED must overcome old fashioned linear feedback loop theory in order to achieve stable control.

I realize this is politically not possible, but post it for the sake of discussion...

Expect a slow recovery...this way...

-Own
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