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Strategies & Market Trends : Market Gems:Stocks w/Strong Earnings and High Tech. Rank -- Ignore unavailable to you. Want to Upgrade?

To: lee kramer who wrote (47400)	6/30/1999 12:26:00 PM
From: Lane Hall-Witt	Respond to of 120523

I enjoy Fed watching (it's good sport!), but I'm pretty stumped about what they'll do. If I had to put money down on a call, I'd say raise rates by 25% and retain the bias toward raising rates. This would seem like the obvious course of action, given that inflation numbers are generally benign at this point. But I agree with your thesis that Greenspan sees the market as the big economic threat at this point. I personally think Greenspan would like to raise rates by 50% and keep the upward bias in order to throw a wrench into the market. He can't really do this, of course, because it would introduce too much risk into the domestic and global financial systems. Also, it's not viable politically. I guess my uncertainty stems from the fact that I see a significant divergence between what Greenspan would like to do (slow down the market, IMO) and what Greenspan can actually do (modest rate hike, pre-emptive). I greatly enjoy your posts, Lee!