Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Pastimes : The Naked Truth - Big Kahuna a Myth -- Ignore unavailable to you. Want to Upgrade?

To: Lizzie Tudor who wrote (49159)	6/24/1999 8:32:00 AM
From: Terry Whitman	Read Replies (1) \| Respond to of 86076

Michelle, .75bp speculation: biz.yahoo.com

To: Lizzie Tudor who wrote (49159)	6/24/1999 8:51:00 AM
From: BGR	Respond to of 86076

Michelle, There were two different sources of rumors yesterday. One was that a Washington based source claiming a 50 bp hike, which was debunked in CNBC. The other was an UCLA (I believe) group forecasting a 25 bp rate hike now and 2 more 25 bp rate hikes later. This, of course, is just a forecast. And, academicians, of course, know nothing unless they happen to sport an opinion that traders are in agreement with, in which case they are put forward as authoritative sources. ;-) In any case, I haven't read that article, but the reporter's view of it started from the hypothesis that the economy needs cooling w/o forwarding any reasons as to why that is necessary. Very odd, to say the least. Fact is, Greenspan will do what he will do. Period. Opinions by others are just that. Opinions. How will the rate hikes affect the economy? The Fed controls a tiny bit of the yield curve and the market (which controls the rest) has already gone back (almost) to the yields of the pre-Oct days. IMHO, therefore, it is not the US economy that should the the main concern, it is the weakening of the two other global currencies that will invariably follow significant rate hikes in the USA. How will this affect the emerging economies is another issue. Personally, given the benign inflation situation I feel that real interest rates (the spread between nominal interest rates and inflation) are already too high by historical standards. -BGR.