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Strategies & Market Trends : VOLTAIRE'S PORCH-MODERATED

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To: stockman_scott who wrote (38275)6/27/2001 4:20:21 PM
From: Jim Willie CB  Read Replies (1) of 65232
 
according to a recent article in the Washington Post, some officials at the Fed are ``increasingly concerned'' that the economy isn't responding to lower interest rates the way it has historically.
DAAAA

Keystone cops at the helm
finally drinking from the cup of reality
and perhaps realizing finally the errors of their ways in their mindless tightening cycle in 1998-98

they totally ignored the natural forces of Post-Y2K
which would have slowed us down plenty
now we will slow down a lot more than plenty
and grow with stagnant pressure during the recovery phase

utterly amazed at the consitent track record of these guys to disturb an extremely delicate equilibrium in the US Bond market with ripples into other major industrial nation's bond markets, with consequences touching all associated economies and stock markets

every time the Fed tinkers, we get
- a recession
- a meltdown halfway across the globe
- a national default on loans
- a run on a currency
- widespread bankruptcies
- decimated wealth or runaway wealth

for six months now investors have been living from rate cut to rate cut
with little regard to earnings reality
and a plethora of FAITH

Faith will yield to FEAR, with very high likelihood

Faith is a liferaft on which to float when you are buying time, ignoring the temporal reality

money to be made in bonds for the next five months !!!
watch as rates drop further, loan demands stands still, business investment disappears, and the whole grows fearful

over and out
in cash, but hardly objective
still angry as hell, and sadder still
/ JW
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