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To: Sig who wrote (5572)9/30/2000 10:14:47 AM
From: Jim Willie CB  Read Replies (5) | Respond to of 13572
 
Will the Fed ease rates just to let the market recover?
Never IMO, this volatility and churning is a gravy train


they will ease to allow for Europe's economy to recover
we live on a worldwide stage

Europe is now teetering on edge of recession
their currency has horribly declined
they now import inflation at the same time from US products
in mid-1970's we used to call that "stagflation"
Europe now suffers from that double-edged economic sword

the Fed watches the US stock market, bank books, prices and orders of intermediate goods, AND FOREIGN ECONOMIES (esp Europe)

the reversal last week whereby the Federal Reserve joined the European and Japanese central banks in an effort to bolster the Euro currency marked the turning point

next move is to ease US rates
only question is when, probably after the US election
other requirement: to save Fed face

/ Jim



To: Sig who wrote (5572)9/30/2000 10:22:43 AM
From: Boplicity  Respond to of 13572
 
LOL, It will stay like this till the fed lowers, we better get used to not being able to invest like we have in the past, if you want to do that, cover calls are the way to go I guess, but DELL, I just don't see it recovering back to it's high for years to come. I do know what will stop the slide, price, when the PE of DELL is 30 matching the growth rate then the stock will stop sliding. INMO.

G