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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: RWS who wrote (23791)	8/25/1999 2:31:00 PM
From: pater tenebrarum	Respond to of 99985

RWS, it is true that money supply data have become less friendly this year...however, the Fed is on track for a record number of coupon passes, and recent experience has shown that the liquidity thus created immediately flows into the stock market. in other words, in spite of the more restrictive stance the Fed has seemingly adopted with it's recent rate hikes, the bubble is fed whatever it takes to keep it going. possibly the Fed is doing this because it was blamed for pricking the bubble of the 1920's and almost lost some of it's powers in the subsequent flood of recriminations and investigations. if once again the Fed were to be blamed for bringing the stock market mania to a violent end, similar attempts to curb it's powers could be in the cards. hence the continued support for the bubble... regards, hb