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

To: Tunica Albuginea who wrote (69880)	2/21/2001 3:25:06 PM
From: CharlieChina	Read Replies (1) \| Respond to of 99985

To ALL: this is Nicholas Gates final post on SI for a long while. Message 15335831 There should exist a significant opportunity to make very good money on the downside, starting in and around March 10 or March 20, 2001. I surmise after March 20, 2001 the final floor of the markets will be gone. Good luck to all again. Bye

To: Tunica Albuginea who wrote (69880)	2/21/2001 3:32:19 PM
From: Les H	Read Replies (2) \| Respond to of 99985

Wasn't inflation rising in 1991 while Greenspan was cutting rates? He'll just reckon with trying to control inflation during expansion when prices are at a higher level. He'll just claim victory that the CPI is at 2.75% at some later date, regardless whether prices have risen 12-15% in the prior two years.

To: Tunica Albuginea who wrote (69880)	2/21/2001 4:04:55 PM
From: Wayners	Respond to of 99985

Les, you cannot lower interest rates while the CPI, PPI are rising and there is evidence of possible inflation. That depends on the type of inflation. There are two types. Demand-pull and Cost-push. Demand pull is cured by Fiscal and Monetary policy. Fighting Cost-push with monetary and fiscal policy has NO effect on prices and you still get greatly increased unemployment and a recession. I think the energy price shocks look more like cost-push than demand pull to me. The energy increases have been the biggest contributing factors to the recent PPI and CPI numbers. Also don't forget about tobacco. You know that litigation settlement is causing those price increases not increased smoker demand. If cost push persists for several years I'd suggest that people will start to demand higher wages.