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To: pater tenebrarum who wrote (75177)11/12/1999 12:05:00 PM
From: Cynic 2005  Read Replies (4) | Respond to of 86076
 
Here is some thought:

It is possible that the Feds are cornered by the sharp rally in the DUNG. What if the rate hike is 0.5 instead of 0.25? Can they rise rates and flood the system with liquidity at the same time (to prevent a stock crash)? I guess not. So, they are pre-empting a larger than expected rate hike with a flood of liquidity. This way they may expect the stock market may retreat sharply without a crash. This might explain the M3 growth 12% annualized (also Y2k fears).

Wishful thinking? Foolish or sound logic? Any one care to take on my take?