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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: LindyBill who wrote (2701)	6/17/1999 12:47:00 PM
From: straight life	Read Replies (1) \| Respond to of 54805

Just to bat this around a little, I think there'll be MORE than one 1/4 point rate rise. Why? Because 1. if they're trying to slow the economy, it takes more than one, especially as the market seems to have become very blas'e about this one and 2. they think they "lent" the market the 75 basis point drop last year and, especially in light of the unemployment figures, it's time to take those points back. Also; the fed is supposed to raise rates PRE-EMPTIVELY; when there's no strong signs of inflation. You see strong signs and it's already too late; the Fed slams hard on the brakes and crash: recession. The most important reason I believe that rates will rise is pure contrariness: No one agrees with me. IMHO ONLY! Please don't bite my head off.

To: LindyBill who wrote (2701)	6/17/1999 8:39:00 PM
From: Mike Buckley	Respond to of 54805

Lindy, These bankers do not understand what is going on, and think they are causing the boom. With Gore thinking he created the Internet, what else would you expect? :) --Mike Buckley

To: LindyBill who wrote (2701)	6/20/1999 8:48:00 AM
From: Morgan Drake	Read Replies (2) \| Respond to of 54805

Inflation is when there is a general price level rise due to too much money chasing too few goods. In the present situation, we've had a real price rise in oil and employers are bidding up labor rates. Demand has exceeded supply in the short run. So what? If the money supply growth is kept at a reasonable level, the real prices of some other goods and services which do not have the same supply/demand profile as labor and oil, will drop. As long as the focus is on money supply, there should be little concern about "inflation" as all we'll be witnessing is a reallocation of resources in the economy. JMHO. Morgan