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.

Technology Stocks : Amazon.com, Inc. (AMZN) -- Ignore unavailable to you. Want to Upgrade?

To: GST who wrote (65279)	6/29/1999 7:58:00 AM
From: Sarmad Y. Hermiz	Read Replies (1) \| Respond to of 164684

>> taxes are rolling in, everybody has a job, we can run a huge trade deficit and still have the dollar rising to offset inflation with cheap imports and inflows of capital, and the Japanese save money for us and ... << The puzzle here is why the dollar stays strong despite all the trade deficits ? Is it because foreigners are using their trade earnings to buy assets in the US ? So the deficit dollars are coming back here ?

To: GST who wrote (65279)	6/29/1999 9:15:00 AM
From: Sam Sara	Read Replies (2) \| Respond to of 164684

From briefing.com: Finally. After weeks of speculation and hand wringing, the FOMC is set to meet, with a decision on Fed policy due tomorrow afternoon. Despite guidance from Chairman Greenspan that the Fed would bump rates by a modest 25 basis points, traders have worked themselves into a tizzy over this meeting. Not only are we to concern ourselves with the severity of the rate hike (25 bp v. 50 bp), investors are now expected to care whether or not the Fed changes its policy directive from tightening to symmetric. To paraphrase Winston Churchill, never, in my years as an analyst, has so much been made of so little by so many. If I'm not mistaken, the Fed's job is to fight inflation. April's data aside, there is no credible evidence to support the argument that inflation is on the rise. Is capacity utilization dangerously high? No. Are commodity prices trending sharply higher? No. Wage pressures? Nope. Is the core CPI rate or the core PCE deflator (a Greenspan favorite) on the rise? No and no. So what do the inflation hawks hang their hate on? Well, from what I can gather it comes down to a) the economy is growing too fast, and b) assets (stocks) are rising too rapidly. But such has been the case for quite some time, and still no tangible evidence of inflation. And with anxiety over the Y2K bug likely to result in a slowing of the former and a decline in the latter, I, for one, believe the Fed should leave well enough alone and sit tight. Now that I've stated my opinion as to what the Fed should do, I will move on to what I'm convinced the Fed will do - raise rates by 25 basis points and move to a symmetric bias . What the heck is a "symmetric bias"?