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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: jmanvegas who wrote (67926)	1/30/2001 9:18:41 AM
From: KyrosL	Read Replies (1) \| Respond to of 99985

I think you greatly overestimate the ability of the Fed to control the economy. There are many factors beyond the Fed's control that can easily overwhelm any Fed action, if the market judges the action precipitous and unwise. That's why the Fed has simply been following the market for a long time and will do so again this time around. The market expects 50 points, so that's what the Fed will do.

To: jmanvegas who wrote (67926)	1/30/2001 9:25:12 AM
From: Tunica Albuginea	Respond to of 99985

jmanvegas, I agree: I prefer a 0.75% rate cut and then sit till March and watch. You do not treat pneumonia , often, with a small outpatient dose of antibiotics. This is called the pneumonia tolerance test and when it fails the patient can end up on the ventilator. 0.75% will tell the markets that Fed means business. Then I would wait for a) spending cuts ( " fiscal restraint " that he alluded to tin Senate testimony ) and b)tax - cuts We already have a California heavy energy tax that needs to be counterbalanced which makes 0.75% a better solution, all IMHO TA