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Pastimes : The Justa and Lars Honors Bob Brinker Investment Club Thread
VTI 335.840.0%4:00 PM EST

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To: Wally Mastroly who wrote (867)3/21/2001 6:30:54 PM
From: MrGreenJeans  Read Replies (2) of 10065
 
Wally

Mr GJ, FWIW, Today's CPI/Core CPI (including Year Over Year), will not encourage Dr. Greenshades to accelerate the rate cutting.
Some of the ripple-effect of energy/chemical costs may be starting to be passed on (for instance in food costs & airline costs). Some of the food increase may be due to the beef 'scares', also.


Greenspan is going to cut more. Energy costs, generally decrease in the summer, for example the price of natural gas will have little effect. How many air-conditioning units run on natural gas? The costs of energy and food are generally unpredictable and have an exogenous impact on the cpi over time.

If Greenspan is concerned about stock prices and consumption he will be cutting rates in short order or he risks seeing the markets tank some more.
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