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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: Scumbria who wrote (114724)	6/6/2000 11:18:00 PM
From: tejek	Read Replies (2) \| Respond to of 1571964

I think the markets are still jittery and want reassurance from Friday's PPI report that the economy is slowing for sure. There is nothing like a slowing economy to help profits. Maybe a full scale recession would send the NAZ back to 5,000? Scumbria, Human greed is causing inflation and not the Feds. A slowing economy can slow down profit growth without causing a recession. The hope is for a soft landing....AG has good experience at doing that. I love the Fed! As you should...before there was a Fed, you may remember from Amer. History in 8th grade, the US suffered from very severe booms and busts, nothing like the ones today. Of course the biggest bust, the Depression, resulted in the creation of the Feds.....its called evolution, like going from a 100MHz to the 1 GHz; its a little painful but we will get there intact. BTW, Scumbria,the feds are human and therefore imperfect like the rest of us. Nonetheless they are getting better at keeping us out of recession. I like that. And you can relax as well......you will continue to make money......just not as fast. ted

To: Scumbria who wrote (114724)	6/7/2000 12:22:00 PM
From: TimF	Read Replies (3) \| Respond to of 1571964

Fleckenstein on the FED and the hopes for a "soft landing" - " That was then. . . A couple of government statistics were released this morning and it turns out that the inventory-to-sales ratio has bumped up for the first time in ages. Folks have been very eager to latch onto anything related to a slowdown because they expect a "soft landing." When we had rate hikes in 1994 things slowed down, and then we were off to the races a year later, so a lot of folks are making the exact same bet again. They don't recognize that the environment is dramatically different. First of all, we've accumulated tremendous levels of debt since then. Second, folks have consumed lots of goodies. You could make the argument that consumers have been more or less sated by going on a tremendous buying binge (which is one of the reasons that we have the debt levels that we do). At some point, the slowdown will no longer be perceived to be bullish. But for the time being, the bubbleonians are salivating for anything related to a slowdown, because they're absolutely certain it will turn into a soft landing. What that implies -- which they won't say -- is that they think the Fed has basically conquered the business cycle: Things get too hot, the Fed slows it down, things get too cold, the Fed warms it up. It's as though they think that communism -- i.e., central planning by a central agency (a bank, in this case) -- actually works, as long as you call it capitalism.