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Politics : Formerly About Advanced Micro Devices

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To: Kevin K. Spurway who wrote (32197)4/27/1998 5:24:00 PM
From: greg nus  Read Replies (1) of 1572752
 
Kevin, What do you make of the Fed. they do a big coupon pass right at the end of the qtr. @ a 5.95 stop. Within weeks The market marches right throught that level with a 6.06 stop on a rummor the Fed to preemptivey might tighten to cool the ecomony. Are they saying they don't need the suprpuls tax revenue comming in. Are now completly complacant toward the impact of competive preasures from the Asian crisis. It would also mean they ae complacant about a potential Japaness meltdown. If everyone beleives were in for a 10% correction or better where will all the short term money go. It should go right right into sucking up the premium in real rates of return vs the inflation rate given up in the bond market. If any inflation in wages is handley being offset in productivity increases. global currency devaluation vs the US dollar are are keeping natural resouces and hence commidity prices in check. In which case the next place to be will be with any money raised from profit taking would be in Zero's. what we need now is some easy to spot drop in Oil prices indicating one of the OPEC is cheating to spark a rally in the bond market. Better yet an decrease in prices due to production overflow from a non member like Indineasian or Russia looking for hard currency. That could be the catalist for a good round of price cutting. The week economy in Japan and the combination of week economies in Asia and the resurgence development of yet another larger El Ninio now developing in southeast asian could do the trick. Buyers could signal they beleive another round of global unseasonal warming from yet another El Ninio could cause OPEC to collapse on a miscalculation of future energy needs.
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