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Strategies & Market Trends : ahhaha's ahs

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To: ahhaha who wrote (2046)4/18/2001 11:50:00 AM
From: ahhahaRead Replies (1) of 24758
 
No one knows how the market would truly price money, but to the extent the open market is adequately doing this now, to that extent the FED has erred. The FED has made a mistake with this latest cut because short market rates as represented by T-Bill and Eurodollars have been rising. FED is supplying money into a rising demand for money. This is the early phase of pouring gasoline on the fire.

The FED for the first time has come out and stated they are doing this because they want to pump corporate profitability and because stock prices are low. They gave some other anecdotal evidence to justify the action, but the main point is to entice the stock market higher. There is no worse reason for policy change than this.

After several months of minor discipline AG takes another dive. He does a terrific job with his trade testimony and then lets who knows what scare him into concession. The what has to be the thing that will create all the trouble and that is fear of depression. It is the fear that risks what he fears.
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