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Strategies & Market Trends : SiliconInvestor All Stars Forum

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To: Mike Johnston who wrote (1439)10/5/2007 1:41:46 PM
From: SouthFloridaGuy of 1718
 
Rates are pretty much where they should be given where economic growth is. 2% real GDP, 2% real rates, makes sense.

As I have said before, It doesn't matter what you think inflation is, it matters what the market thinks (as is mentioned in the Mission Statement).

The Fed can't control what Asia wants to do with their excess money. So long as market based measures of inflation are in-line - and they are for the most part - the Fed should worry about US growth.

If Asian inflation spills over here and/or US growth is out of line, then we should worry.

I've said this before, we're getting a free-pass for this housing thing as it could be much worse.
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