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Technology Stocks : The New Qualcomm - a S&P500 company -- Ignore unavailable to you. Want to Upgrade?

To: JMD who wrote (1758)	9/21/1999 6:03:00 PM
From: Art Bechhoefer	Read Replies (1) \| Respond to of 13582

Mike, under the New Paradigm Economy, the Federal Reserve can change things (or at least try). The lower value of the dollar against other hard currencies such as the yen and the Euro should be seen as a response to continuing record trade deficits, getting bigger every month. I guess we can expect the Federal Reserve to step in and raise interest rates to keep the dollar strong, and to widen the already huge trade deficit by making foreign goods cheaper than they ought to be. I suppose the Fed's rationale will be that this will reduce inflationary pressure. But while I believe in the need for regulation, I don't believe that action to raise interest rates is the way to correct the problem. The way to correct it is simply to allow foreign goods to get more expensive, by, in effect, doing nothing. However, the odds are about 5 to 1 that when the Fed meets in October, they will get all hot and bothered about inflation and do the obvious. Art