ZINC The base metal. News and Views. Symbol Zn Message Board

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Gold/Mining/Energy : ZINC The base metal. News and Views. Symbol Zn

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To: Claude Cormier who wrote (131)	2/26/1999 2:19:00 PM
From: Ray Hughes	Read Replies (1) of 3270

Claude: In recent decades most recessionary events were triggered by the US Fed creating a credit squeeze. At other times they've raised interest rates but kept credit flowing and, thereby, engineered successful "soft landings" without disruptive recession. I suspect this is what is in store as the Fed attempts to offset US full employment against any Asian demand recovery. Right now the Fed is pumping large amounts of liquidity into the system via daily "repos." Looks to me like Greenspan is trying to "jawbone" investors into a state of caution without actually tightening credit because, as you note, there are many soft spots showing that there is no reason, other than moderating equity speculation, to trigger slower growth. Of course, guessing about the economic outlook keeps an army of economists employed. Notice that LME 3-month buyer zinc is up 1 cent/lb. today and is nearly in backwardation vs 15-month buyer price. Chart of 3-month buyer zinc price is beginning to suggest that it could base in the 1050 pounds sterling area and then break out to the upside. RH

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