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To: limtex who wrote (20080)	11/28/2000 1:22:06 PM
From: edamo	Read Replies (2) \| Respond to of 65232

limtex...with all due respect, what benefit is it to the fed to destroy the equity markets? have you lived through a real economic downturn? and if so did you recover, or are you worse off? you refer to the strong 98 economy...in which we had an october global meltdown......most nasdaq stocks opened up 50% down on that bleak day..... you need to get real...this is coming from one who went to cash long before mm did....and it is documented on these threads... comments as yours are encouraging as it is a contra indicator, typical of a bottoming psychology....unless of course you were urging people to bail in march....if so i retract my comments...

To: limtex who wrote (20080)	11/28/2000 1:31:25 PM
From: Jim Willie CB	Respond to of 65232

I think you are off slightly Greenspan's target is the labor market not the Naz stock market FedReserve clings to the broken Phillips Curve beliefs in 1996 he thought inflation would rise since unemploymt went under 5% WRONG, since Phillips ignored the productivity component Greeny knew that, took the risk against wishes of Fed Governors and Greeny was proved right now he thinks again inflation will rise since unemploymt has been under 4% KEEP IT THIS TIGHT AND HE WILL BE RIGHT higher energy costs acted like another 50 bpt rate hike it also caused minor amounts of inflation but the real painful effect is in lost earnings, NOT inflation WE HAVE ENTERED AN EARNINGS RECESSION meanwhile add 6-8 months from the springtime final rate hikes and you get Oct,Nov,Dec,Jan for the climax effect of those hikes we are seeing them now as revenue slowdown, and earnings slowdown Greeny has stated that he believes 10% reduction in stock value results in 2% reduction in consumer spending my view is Christmas is a Last Hurrah, spending on credit yearend rally to 3300-3500 max then (if no Fed rate cut) descent to 2500-2700 on Naz / Jim