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Pastimes : The Naked Truth - Big Kahuna a Myth -- Ignore unavailable to you. Want to Upgrade?

To: NickSE who wrote (76207)	11/18/1999 7:34:00 PM
From: NickSE	Respond to of 86076

Wealth effect a Myth??? -s- U.S. consumers confident of goods times ahead biz.yahoo.com ...The sustained stock market boom has meant consumers plan to use more of their gains for large purchases such as new cars. The average withdrawal rose to $21,477 in the third quarter of this year from $14,208 at the end of 1998...

To: NickSE who wrote (76207)	11/18/1999 7:43:00 PM
From: NickSE	Respond to of 86076

TALK FROM TRENCHES: TSYS DOWN AGAIN; FED STILL A HEAD-SCRATCHER economeister.com NEW YORK (MktNews) - U.S. Treasuries are lower for the third day in a row Thursday. Sources say the market just can't seem to shake off rate hike fears. And while there are still some bulls out there who are looking for lower yields as year-end nears, there seems to be a growing number of people who are bracing for another rate hike as early as January, as soon as Y2K concerns have passed. But is that a rational concern, some players ask? After all, it was liking pulling teeth to get the rate hike from the FOMC that the market seemed to want in the first place. But instead of rallying in relief when the hike was out of the way, the market has given back about 40% of the gains from its Oct 25 to Nov 16 rally! Is the Fed really ready to hike another 50 bps in Jan? Do people think they would love to pull the trigger as soon as Dec 21 if only they didn't have that annoying problem of Y2K in the way? If so, why didn't they shock the market and raise rates 50 bps on Tuesday? Or why didn't they leave the tightening bias in place?... [..] ...Rising oil prices are another thorn in the side of the U.S. Treasury market. But some analysts say oil price worries may be overblown based on previous price patterns. They point out that, for the most part, prices have been comfortable for long periods of time, assuming $20 a barrel as being comfortable. They point out that price pressures have blossomed only a few times since 1986 and most importantly, those periods of time have been shortlived in nature. Since 1986, price pressures existed between July 1990 to January 1991, July 1996 to January 1997, and currently July 1999 to the present. Analysts say that if prices peak in early 2000 and repeat the same pattern of returning to $20 a barrel or lower for a long period of time, the 1999 oil price concern may prove to be overblown. They also say that since latest price rise started from such a low base of $10.72 on December 10, '98, too much attention has been made to the recent rise.