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Strategies & Market Trends : Currencies and the Global Capital Markets

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To: Robert Douglas who wrote (3165)12/7/2001 5:41:51 PM
From: Lee   of 3536
 
Robert,

Yes, I would have to agree this is a bit premature and serves only to prolong the downturn. The squabbling over the fiscal stimulus is also disingenuous and serves to prolong the downturn. It is true that the consumer continues to surprise me with the spend, but 100bp rise in the face of disinflation seems incorrect.

I'd like to see Bush say Dems you give me $100 bil and Repubs you give me $100 bil and that’s the fiscal stimulus signed, sealed, and enacted. But what will that do to rates? The rates are now saying no stimulus. But it seems the onset of disinflation, which looks like bargains to consumers, could soon cross over to why spend?, it will be cheaper tomorrow.

Lee
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