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Technology Stocks : Advanced Micro Devices - Moderated (AMD)
AMD 210.78-4.8%Dec 12 9:30 AM EST

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To: kapkan4u who wrote (86311)8/3/2002 11:11:57 AM
From: Dan3Read Replies (3) of 275872
 
Re: We are long past that point [at which monetary policy stops working].

Well, buyers are still willing to borrow to purchase homes, and banks are still willing to lend to them. That's why I think there's hope unless (until?) the housing market begins to slow - if that happens, look out below!

The 3/4 percent rate cut will not move the 10 and 30-year T-bond or mortgage rates. The long rates may even go higher.

I don't see that happening absent a fear of inflation - which doesn't seem to be an imminent problem! Are there other mechanisims you see raising long term rates? A collapsing dollar? Balance of trade crisis?
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