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To: SOROS who wrote (1600)1/29/2000 5:26:00 PM
From: Jim Willie CB  Respond to of 35685
 
high GDP growth was expected in Q4
they were wise enough to notice built up inventories
we are talking inventory across full spectrum, not just technology
but computer technology will be the biggest loser on this side of Y2K

you continue to believe Greenspan is in control
he is not... he follows the 3month TBill
he always has, and always will... why dont people understand?
probably because you guys never read about bonds
and if you do, you only read about the longbond

I firmly believe Greenspan will raise 25bp, since the shortend of the bond market is calling for it

Greenspan's brilliance lies in his restraint and his obedience to the bond market
and he is called a genius
only the obscurity of his speeches could be mistaken for those by a genius
his policy could be enacted by a college dropout

the Fed will continue to raise FedFundsRate until the 3month TBill stops rising
I wonder if the bond market might suspect that the GDP heavy growth could wane in coming months

check the 30mo TBill yourself, and predict Greenspan's move
he may just NOT want to roil financial markets this week
they have been shaken up to some extent already
/ Jim



To: SOROS who wrote (1600)1/29/2000 5:32:00 PM
From: RocketMan  Read Replies (3) | Respond to of 35685
 
That's only a quarterly growth rate. For the year, growth in 1999 was 4 percent, lower than 1998 (4.3) and 1997 (4.5). This shows the economy is slowing down. One reason for the large growth rate in the last quarter, besides seasonality, was Greenscam's pumping money into the economy for Y2K.

I find it interesting that the Fed and the global economists are so worried about how well the US economy is working, hitting on all cylinders. Just wait until they slow it down, then they will really have something to worry about. Then they will come crying asking for assistance to help their ailing economies.