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Strategies & Market Trends : Ask Vendit Off-Topic Questions

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To: sandintoes who wrote (3526)1/4/2005 10:24:48 PM
From: Vendit™  Read Replies (2) of 8752
 
The feds have been leading banks money at near 0% interest for the past several years. We are now in a post election year. Investors now expect interest rates to rise to counter inflation because of the improving economy that Bush’s tax cut’s caused.

Greenspan uses interest rates to shield the economy both from rising and from lowering inflation. Now that we are no longer in an all out media battle for Jane Fonda’s underwear,<g> there is no reason to hide the truth in the fact that the U.S. economy is robust and needs a little tempering.

Reid
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