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To: Eric who wrote (45707)1/2/2001 12:42:47 PM
From: Eric  Respond to of 77397
 
The thing that I'm really curious about is how much the fed will actually cut rates from this juncture. The manufacturing report was very telling about the magnitude of this problem. I was not too surprised about today's selling but it's magnitude going forward in the next few days will be critical for Greenspan.

The psychology has to change soon or there will be more damage done to the economy. I hate to say it but I'm beginning to smell the "R" word.

Eric



To: Eric who wrote (45707)1/2/2001 12:49:32 PM
From: michael97123  Respond to of 77397
 
Many have said such a poor number would cause AG to act decisively. Look for the fed to intervene prior to January 31, and look for the half point cut. A good part of this is psychology anyway and fed intervention will immediately calm the markets. Inaction threatens recession both US and globally and this is a fed nightmare scenario. Greenspan is a global recession hawk.