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Strategies & Market Trends : Three Amigos Stock Thread -- Ignore unavailable to you. Want to Upgrade?

To: j g cordes who wrote (15962)	6/24/1999 10:41:00 AM
From: j g cordes	Respond to of 29382

Sorry there Jim.. didn't mean 'wrong' as in you are wrong, but in the current vernacular of 'wrong' conclusion based on traditional thinking about the relationships of Fed/ spending/ inflation/ productivity and world markets. I think the key is that technology and the spread of globally competitive production/markets has increased the pace of sectors rising and falling (hundreds of sector self adjustments) instead of that large industry wide tinkering with rates we used to have. Its not as useful as it once was. Other factors they control like money supply, banking regulations on lending, international banking and currencies is far more important and effective at fine tuning the course of the economic ship.

To: j g cordes who wrote (15962)	6/24/1999 3:45:00 PM
From: James Strauss	Read Replies (2) \| Respond to of 29382

Jim: When inflation was in the double digits in the early 80's, it was fed by the anticipation of higher prices... We don't have that today... Inflation is relatively low... Consumers don't feel pressured to buy today because they think prices are going up tomw... Add a few 1/4 point rate hikes into the mix and you cool down the rate of economic expansion... As such, consumers maintain their current rate of buying... Jim