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Strategies & Market Trends : Stock Attack -- A Complete Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Gersh Avery who wrote (38739)	12/20/2000 10:07:36 PM
From: Haim R. Branisteanu	Read Replies (1) \| Respond to of 42787

Lower energy prices reduce the price of most if not all products we buy or use, therefore inflation will fall. My estimation is that 10% less energy prices result in about 0.5% less inflation at today's rates. CB's usually keep a spread between interest rates and inflation. Japan with no inflation has almost zero interest rates, as the economy is not even reviving, not to mention overheating. Aside from oil prices the so called "wealth effect" evaporated and the US economy must be re-charged by lower rates sooner than later or other wise we will be in Japan situation. Haim