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Strategies & Market Trends : Sharck Soup -- Ignore unavailable to you. Want to Upgrade?

To: velociraptor_ who wrote (8681)	2/1/2001 10:12:37 AM
From: Frederick Langford	Respond to of 37746

Velo, Yes, no question it takes 6 months or so for rate changes to trickle into the market, however normally the market trades 6 months out. I believe any 'problems' out there were sparked by the heavy rate increases, except of course as previously mentioned, energy prices. I'm not expecting a turn around today, however, I do believe if AG continues to cut rates, we should be ok. Fred

To: velociraptor_ who wrote (8681)	2/1/2001 10:31:18 AM
From: Bid Buster	Respond to of 37746

rate cuts are no fix..this is a desperate act by the fed to try to reinflate the economy...with the fed adding to the money supply faster than AMZN can issue new stock and with rate cuts that make money cheaper to borrow its an inflation beast of the first order..many people wrongly assume inflation causes are the rising costs of basic commodities, that is incorrect, it is the expansion of the money supply at the root of inflation...print more money the less it's worth, the less it's worth the more it takes to buy basic goods..so rising costs are the secondary effect of an expanding money supply...the dollar is devaluing as i type if anyone cares to take a look (109.70 down .83)and it will get worse before it can get better...unfortunatly the fed failed to act soon enough with rate cuts..if they had cut when the nasdaq broke to the upside of 3000 the first time perhaps the speculative bubble could have had the air let out slowly..i'm just deeply concerned that the purchase value of the dollar is going to head south a lot farther than people imagine..and that means ALL dollar denominated assets go down with it. p.s. dollar index now down 1.02