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Politics : Formerly About Applied Materials
AMAT 223.88+1.6%3:59 PM EST

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To: 16yearcycle who wrote (25390)10/16/1998 3:14:00 PM
From: blake_paterson  Read Replies (1) of 70976
 
<<but I want to suggest that REAL interest rates have been sky high the past 2 years, and resulted in decreased economic activity. The fed was too tight for a long time and now AG wants to make up for it.>>

Agreed. However, I'm not so convinced about the cause-effect relationship here. Did the slowdown occur because of the fed or because of over-leveraging in Asia and (subsequently) in our hedge funds (not to mention our collective irrational exuberance here on the Street). If the latter, then will the market pattern (which you so accurately observed and described) repeat itself? Or will the next 4 weeks be different?

BP
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