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Strategies & Market Trends : Booms, Busts, and Recoveries

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To: Don Lloyd who wrote (13752)1/21/2002 12:09:14 AM
From: Maurice Winn  Read Replies (3) of 74559
 
<When the Fed depresses interest rates below their normal level, it is entirely rational to bid up the present prices of all products which provide at least some of their utility in the future.>

Don, and until those product prices do start rising, [or stop falling], and while there is still rampant economic doomsterism and poverty effect, I can't see Uncle Al getting too worried about inflationary pressures.

Then, once the corner is turned, he'll be raise interest rates in short order as a warning to everyone not to go nuts again.

The dot.comic and telecosmic bubbles will have be absorbed into the overall economic situation and people will be back to 'normal'.

That's my bet,
Mqurice
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