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

To: Boplicity who wrote (25624)	12/17/2000 5:45:53 PM
From: cyberian-husky	Read Replies (2) \| Respond to of 65232

>>>the fed has the ball<<< I don't think they will drop it. They know what they are up against. Keeping the economy in check does not include driving it into a recession. That is the last thing they want. What does the Fed see? They see oil prices topping off. By Spring, oil should be back at a reasonable rate. The price of natural gas will be less of a concern by Spring. So what can the Fed do right now to prevent this economy from slipping beyond their grasp? Lower the rates 1/4 point this week. Do it again at the following meeting. Then sit back and wait for Spring to arrive. This new economy can bounce back from the punishment it has taken. Most of the fat has been cut away. What is left is a leaner Corporate America competing for the future. The old economy companies have less fat on them then ever. The new economy companies are needed to keep them running at top speed. If there could ever be a bounce back it is now. Inflation still has not shown it's ugly face. It's peaking around the bushes, but not actually breathing down our backs. The Fed is well aware of what they are up against. They have had such a successful run that they will not allow the economy to erode into recession due to over tightening. The time is now to lower rates. Greenspan practically told us this the other week. Bias has been removed. The drop in rates will happen. This new economy will bounce back under a much closer eye of the Fed as to not allow it to run away on them once again. If there ever was a time in history where the economy could bounce back it is here and now. The Fed put a choke hold on it too early and too tight. If they allow it to breath again it will run as far as it was meant to. The Fed knows this. They will hand off that ball and let it run. Just an opinion.