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To: Lucretius who wrote (80285)12/17/1999 9:19:00 PM
From: valueminded  Respond to of 86076
 
LT:

I had originally thought the same, but have been converted. No waaaay that the FED does anything unless hand is forced. They will not stop printing until it becomes untenable.

The only reason they have raised rates is that they have been forced to. Without rate increases, the selling of debt is impossible and the expansion in the money supply is also impossible. Bond players have got to be irritated, that the only way they buy more debt is if the risk is substantially reduced. (the spread between inflation and interest rates increases.) Look for more of the same. I am searching for the catalyst that takes the market apart because I do not believe that interest rates or even inflation will affect market.