Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Pastimes : Clown-Free Zone... sorry, no clowns allowed -- Ignore unavailable to you. Want to Upgrade?

To: AllansAlias who wrote (47092)	12/13/2000 12:14:27 PM
From: Perspective	Read Replies (1) \| Respond to of 436258

For some historical perspective, I pulled out my January, 1991 Investor's Daily, from the day the war with Iraq started. What I was looking at was the behavior of the market relative to the credit markets. Interestingly enough, the bottom for stocks was almost a year after interest rates started to fall for real. The first prime rate cut was in June, 1989. Fed Funds had topped out in March, 1989. The bottom for stocks was October, 1990. Of course, the discount rate cut didn't come until December, 1990. Granted, maybe the war made it more difficult to restart the economy, but I think it's interesting how bad things became in 1990 even with falling interest rates. I'm not inclined to believe that things are about to turn on a dime here if Greenspan hints that he might ease the funds rate. Talk to me about Fed moves when the prospect of a discount rate cut comes up. BC