Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Pastimes : All Clowns Must Be Destroyed -- Ignore unavailable to you. Want to Upgrade?

To: KyrosL who wrote (18399)	3/16/2000 5:56:00 PM
From: pater tenebrarum	Read Replies (2) \| Respond to of 42523

KL, i also think 1/2 point is a fait accompli at this point. everything points to a dangerously overheating economy...and producer price inflation came in at an annualized rate of 12% today. it is nonsense to exclude energy, which only seems to go up anyway, as it will eventually ripple through the whole economy. note that raw materials inflation is at it's highest 12-month rate of change since 1974. either corporate margins will get squeezed mightily, or inflation will finally find its way into consumer prices. if Greenspan persists with his gradualist approach (i hope the stock market disabused him of that), the market will realize that he's not serious about containing anything. in that case i suggest we will see the biggest blow-off of all time, a broad-based incredible advance in prices that will lead the economy over a cliff... it could be that today's action was but a foretaste...i think the market is trying to pre-empt the reaction to a 1/4 point hike, which would do nothing to stop it.

To: KyrosL who wrote (18399)	3/16/2000 6:08:00 PM
From: patron_anejo_por_favor	Respond to of 42523

I think they have to raise by at LEAST 0.5... Or risk losing any semblence of control of the money supply and inflation. At this point, it might make more sense to drop the bomb and raise by 0.75, just to get it over with. These 0.25% raises aren't changing psychology, that's for damned sure. This is beyond "irrational exuberance", more like "delusional psychosis". Frankly, I don't care if I miss any more up side, the risk side of the equation has just gone ballistic (even if it doesn't happen for 6 mos). A few more days like today, and I'll be burying Krugerrands in the back yard, just like Luc <g>.