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Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: long-gone who wrote (49319)	2/18/2000 2:40:00 PM
From: Alex	Respond to of 116764

Is the Fed wrong?........... Fed incremental in case it makes mistake - Kelley BONITA SPRINGS, Fla., Feb 18 (Reuters) - Federal Reserve Board Governor Edward Kelley said on Friday the U.S. central bank was moving interest rates in small increments because the economy is changing radically and the Fed could make mistakes. In a question-and-answer session after a speech to the Bonita Springs Speakers Assembly here, Kelley was asked why the current group of Fed policy-makers tended to move rates in small 25-basis-point steps. ``...We see ourselves in an era where change is radical and it's very very difficult to be very very sure what you are doing is the correct thing to do at any given time. So it seems to us that the best way to go is incrementally,' he said. ``We never want to bet the ranch on any one theory. We could very well be proven wrong over time in any different direction and there's always got to be a way back,' Kelley added. ``There's always got to be a way to change if you turn out to be wrong without having done an enormous amount of harm in the process.' biz.yahoo.com

To: long-gone who wrote (49319)	2/18/2000 2:57:00 PM
From: donald martin	Read Replies (2) \| Respond to of 116764

<<"something funny" is going on in the gold market.>> I have this nebulous sense that the "funny" that's going on, both in the gold market AND in the US securities markets, has to do with the wild success of momentum based trading over the past several years. I've been scolded over the years for not using stops to get out of most of my mining issues. Momentum trading gets a lot of accolades for its ability to avert capital drawdowns. However, all these models, or at least the successful ones I've seen to date, rely on price continuity as a capital preservation device. A nice, healthy dose of illiquidity will bring a healthy bit of skepticism to trend trading AND put gold on better footing.