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

To: Benkea who wrote (25041)	9/7/1999 5:35:00 PM
From: Ken98	Read Replies (1) \| Respond to of 99985

And hence the dilemma that the Fed finds itself in today. At some point in the near future the Fed will be put in the position of deciding to defend either (a) the bond market by raising rates because of the inflation that is rapidly embedding itself in the economy (as a result of excess liquidity created by the Fed), or (b) the equity bubble by continuing to inject massive amounts of liquidity into the system. The Fed is trying to straddle the fence like it has for the last several months. My guess is that a decline in the dollar will force the Fed to choose (a) or (b). A sharp rise in the trade deficit numbers will likely be the trigger. Regards, Ken.

To: Benkea who wrote (25041)	9/7/1999 6:19:00 PM
From: Haim R. Branisteanu	Read Replies (2) \| Respond to of 99985

Benkea thank you for calling me an idiot. Yes I am buying bonds,every time they dip above 6.15% and yes there is inflation around 3.25% to 3.5%. BWDIK Haim