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Strategies & Market Trends : Waiting for the big Kahuna

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To: Monty Lenard who wrote (28808)9/24/1998 9:19:00 PM
From: Haim R. Branisteanu  Read Replies (3) of 94695
 
<<<And, why in the hell is Germany not willing to do the same? >>>>

Germany has the most exposure to Russia and other East European countries, for more than the US or UK.

Interest rates there are lower than in the US or UK, therefore those two countries need to lower interest rates as inflation rates in all western countries are more or less the same.

Based on the 30 year Bond I anticipate a 50 basis point cut. Actually a 75bp is needed. This will place real rates at the historical restrictive spread of 300bp above inflation.

Just ask teh corn belt about inflation in the US.

BWDIK

Haim
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