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Strategies & Market Trends : Currencies and the Global Capital Markets -- Ignore unavailable to you. Want to Upgrade?

To: Paul Berliner who wrote (2810)	1/3/2001 4:08:37 PM
From: hobo	Read Replies (1) \| Respond to of 3536

This 50bp cut couldn't wait until the end of Jan meeting? What a mess. I just lost alot of respect for the Fed. All this does is say 'don't panic - we are in control', but its a joke this time. The economy is finished and the banks are next to go. Political influence perhaps ? Before you answer, think about the elections for a moment.

To: Paul Berliner who wrote (2810)	1/3/2001 4:15:18 PM
From: Sam	Read Replies (2) \| Respond to of 3536

I disagree, Paul. The market had taken 10 year rates below 5%. Mr. Market was way ahead of the Fed, and it was time--past time, I think--to play catch up (as the Fed has almost always done over the past decade or so). I think, too, there may have been a little political message in this cut--"we can and will prevent a recession," the Fed is telling the Bush/Cheney team and, even more importantly, Congressional moderates, since the BC team is going to push for their cuts no matter what to repay their nearly half trillion debt to their supporters, "we don't need exhorbitant tax cuts that will send us back into deficits." At least that is my take on this. If the NAPM numbers hadn't been so bad, they probably would have waited until Friday unemployment numbers or perhaps next week, but some sort of cut was overdue. IMHO.