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Strategies & Market Trends : Piffer OT - And Other Assorted Nuts -- Ignore unavailable to you. Want to Upgrade?

To: The Phoenix who wrote (62101)	12/20/2000 10:00:41 AM
From: Dana Johnson	Read Replies (1) \| Respond to of 63513

So how about buying heavily shorted stocks? Look at HAND today...

To: The Phoenix who wrote (62101)	12/20/2000 10:01:31 AM
From: mph	Read Replies (1) \| Respond to of 63513

gee, and I thought that concerned=you're actually doing something. I find it remarkable that a 1/4 beep cut was not accomplished yesterday. Given the fact that it takes months for the effects to show up, would it have made that much difference to do it yesterday as opposed to 6 weeks from now? AG still has his eyes on the market and wanted to ensure no Santa Claus rally, IMO. Just another Grinch on the political scene. The good news is that coal in the stockings can be used for fuel.......

To: The Phoenix who wrote (62101)	12/20/2000 10:32:50 AM
From: Rich1	Read Replies (3) \| Respond to of 63513

Okay lets say you are right.. So do you go to cash?? I am 50 percent cash and bleeding do I sell all my LTBH stuff and put my $$$ in bonds hoping this moron AG lowers rates so Bonds go up.. Bonds already have 75 basis point reduction.

To: The Phoenix who wrote (62101)	12/20/2000 11:19:17 AM
From: John Pitera	Read Replies (1) \| Respond to of 63513

OG, here's some commentary that agrees with you on AG. No Time for Incrementalism 20-Dec-00 07:04 ET [BRIEFING.COM - Robert Walberg] The Greenspan Fed is known for its incrementalism. As such, it was unlikely that the Fed would move from a tightening bias at the November Federal Open Market Committee (FOMC) meeting to a rate cut at yesterday's meeting. Unlikely, but not impossible. Or so the market thought. Going into yesterday's much anticipated meeting, the market was pricing in about a 44% chance of a rate cut - up from 14% several days ago. To the marketplace, last week's favorable inflation data, the steady drumbeat of earnings warnings from nearly all segments of corporate America, softness in the manufacturing sector, a sharp drop in consumer confidence, tight credit conditions, and a surge in the number of reported layoffs provided all the evidence needed for bold action from the Fed. Unfortunately, the words bold and Greenspan rarely go together, and this was no exception. Instead of sending a strong message to the markets that it was on top of the current slowdown and would act swiftly to ensure a soft landing, the Fed opted for the more deliberate course and merely adjusted its bias from neutral to easing. (This analyst maintains that Greenspan effectively altered Fed bias from tightening to neutral when he spoke at the America’s Community Bankers Conference on 12/5.) In so doing, the Fed dropped the ball. By moving to an easing bias, the Fed basically told the market it plans to cut rates at its next meeting come January 31, 2001. But why wait. If the Fed is going to begin lowering rates anyway it should have started doing so immediately. Deciding to postpone a rate cut so as not to appear rash, or overly concerned by the current slowdown, was just plain stupid. Being able to admit when you're wrong is part of growing up. The Fed went too far in raising rates during the tightening cycle. Instead of admitting this mistake and acting swiftly to correct it, the Fed continued to take baby steps and now risks a recession. The market's violent reaction to yesterday's decision was not only understandable but justified. Current conditions scream out for bold action and we didn't get it. Until the Fed eases, stock prices will continue trending lower, thereby exacerbating the negative wealth effect. Let's hope Greenspan & Co don't wait the full six weeks to realize their mistake.