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Politics : Right Wing Extremist Thread -- Ignore unavailable to you. Want to Upgrade?


To: MulhollandDrive who wrote (487)1/4/2001 2:25:43 PM
From: H-Man  Respond to of 59480
 
Interesting point on the $$ outflow. Cavuto was speculating that one or more hedge funds were going to be forced to liquidate, and that was at least part of the reasoning.

It is probably not true, but I would not rule it out altogether.

Such an event could take down the NAZ 500-700 pts in a few days. Once through 2000 I dont see any support till 1400, but anybody's guess as good as another. 1200 would have been doable imo.

The ripple effects, would take years to overcome. Noooo more capital for that IPO or bond issue sonny boy.

FWIW the weekly NAZ chart shows a hammer if it finishes out around here (2500)



To: MulhollandDrive who wrote (487)1/4/2001 6:31:56 PM
From: DMaA  Read Replies (2) | Respond to of 59480
 
bp, what do you think of this original theory ( at least I haven't seen it published yet ).

When the economy anticipates a tax cut in the near future, it defers some if its activities to take advantage of the future cut. This results in an economic downturn.

Perhaps Greenspan believes a tax cut is inevitable and this stimulus is to buck up the economy to cover the anticipatory slump period.