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Technology Stocks : Advanced Micro Devices - Moderated (AMD)
AMD 203.14-0.8%Jan 9 3:59 PM EST

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To: AK2004 who wrote (52066)8/22/2001 5:33:32 PM
From: niceguy767Read Replies (1) of 275872
 
albert:

Thanks for the report. Seems to be a very realistic assessment that is supported by a compelling rationale.

Another macro factor has to do with the fact that despite a 3 point drop (i.e interest carrying costs reduced by almost 50%) in fed rate over the past 8 months, the economy remains in neutral to decline. It is a little unnerving when a 50% decline in the fed rate over such a short period has not demonstrated any discernible recovery signs...Not only has this venerable lever not responded by stimulating as was predictable in the past but there remains little additional room for manoeuvring given the current 3-1/2% fed rate! Looks like deflation is a much greater threat at the moment than inflation when interest carrying costs (i.e mortgages and other credits) can be as precipitously reduced without setting off the previously predictable kickstart effect on the economy.
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