To: DEER HUNTER who wrote (4477 ) 5/26/2000 12:21:00 PM From: Crystal ball Read Replies (1) | Respond to
SHOOTING THE LAST BEARS: The Fed is Dead Red... Unsustainable Hikes in Federal Reserve Rates are the POOREST attempt at substituting LABOR POLICY with FEDERAL RESERVE BANK INTEREST RATE POLICY. The Interest Rate hikes are unsustainable in a strong economy because of competition. No bank worth it's charter ought to or need to pay higher Fed Rates, they can get the money from the cash flows of their large corporate customers. The China Trade Pacts (PNTR/WTO) and the existing NAFTA (Mexico/Border Industrial Zones) have provided all the CHEAP LABOR that we will ever need, despite the unfounded imaginary fear of Alan Greenspan that we may be facing wage inflation, which is found no where in reality. You can not EVER sustain Federal Rates HIGHER THAN the CPI AND GDP....we now are. GDP was again 5.4% unchanged. CPI is lower yet. Banks can get capital elsewhere, even globally. No one needs to go to the Federal Reserve when they are CLEARLY OVERCHARGING. Any issues about wages should be handled by the Labor Department. The Federal Reserve Chairman also overstepped his "independence" of the Federal Reserve Banks and FOMC by LOBBYING FOR THE CHINA TRADE BILL (PNTR) with Bill Clinton. His day is over. The New Economy can not be stopped. The CHINA RALLY will overlap with the SUMMER RALLY. STocks will return to their prior highs. Note that Computer Component Companies VSH and HDC and others never were even knocked down by Greenspan's Rate Hikes. You can NEVER HAVE A BEAR MARKET IN A STRONG ECONOMY. Just like you can never sustain Federal Reserve Rate Hikes above competing supplies of capital, M1, M2. M3.
