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

To: jmootx who wrote (49795)	5/8/2000 2:53:00 PM
From: pater tenebrarum	Read Replies (2) \| Respond to of 99985

i happen to think that it's a late stage crack-up boom in Austrian terminology. induced by easy monetary policy and the resulting increase in private sector leverage. btw, contrary to what most observers apparently judge to be 'tightness' on the part of the Fed, the current CPI and PPI run rates indicate that the Fed is far from tight in real terms. consequently credit demand remains on its explosive path. add to that a recent surge in government spending plus continued pumping of banking system reserves by the Fed, which is satisfying all credit demand that exists at the current funds rate, and it is no wonder that the economy is bursting at the seams. all this suggests to me that both the current account deficit and the inflation picture are likely to worsen in coming months...unless the financial markets suffer a drastic accident. this picture of credit spreads should give everyone pause: 216.46.231.211 regards, hb