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Strategies & Market Trends : VOLTAIRE'S PORCH-MODERATED -- Ignore unavailable to you. Want to Upgrade?


To: bela_ghoulashi who wrote (32)9/10/2000 8:43:47 AM
From: Jim Willie CB  Read Replies (1) | Respond to of 65232
 
BlandMan, if I might add a plank to point#3 on Fed rates

the USdollar is strong as hell now
the Euro currency is teetering at alltime lows
Euro is now 25% below initial christened value Jan99
Fed is between a rock & hard place, cannot raise rates

the yield curve has become laughable
the 10yr TNote yield is 5.8%
the 30yr TBond yield is 5.7%
the 2yr TBill yield is also well below the FedFunds rate
the Fed-controlled FedFunds rate is 6.5%

Greenspan continues to apply brakes to the economy
the pressure is on the Federal Reserve to lower rates

meanwhile the MoneySupply continues to expand slowly
which is what we want ideally
MoneySupply is the other lever controlled by the Fed
IMO that is the sole source of inflation
not labor costs, not oil prices, not trade deficits

the bond yield curve resembles one seen in the middle of a recession

hey, nice Porch
does it contain a "timeout corner", a "jail"...
or just an "exit for exile" ???

does this mean I cannot bitch someone out, or swear like a sailor ???
/ Jim



To: bela_ghoulashi who wrote (32)9/10/2000 10:32:39 AM
From: Boplicity  Respond to of 65232
 
re: The catalyst for the pullback was earnings downgrades

He left out one important leg of the demise of the advance, the perceived infra sector slow down (I don't buy it myself), which in my mind is more important then the PC sector and the INTC downgrade.

Greg