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


To: Bruce Denney who wrote (35499)12/20/1999 6:15:00 PM
From: pater tenebrarum  Read Replies (1) | Respond to of 99985
 
Bruce, who knows, the fun may come back to the bond contract. officially the Fed is sounding off on how 'pre-emptive' it is with regards to inflation, while in reality it has swallowed the new era story hook line and sinker...of course, so far the inflationary aspect of the money supply explosion of the 90's has been confined to the stock market, and most people probably regard that type of inflation as benign.
i can basically imagine two possible outcomes of the Fed's printing orgy, depending largely on how overseas economies are doing in the next year or two. a) European and Asian economies truly recover and begin to grow again at a faster pace, in which case the monetary overstimulation will finally let the inflation genie out of the bottle with a vengeance, or b) the recovery is not for real, the problems where just temporarily papered over by the monetary excess, in which case S&P's credit bust with deflationary implications would be an option.
either way bonds will make a major move....

regards,

hb