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

To: Tunica Albuginea who wrote (69894)	2/21/2001 4:20:01 PM
From: Dave	Read Replies (2) \| Respond to of 99985

Jeez you guys...so pessimistic. Why don't we all just put a bullet in our head right now.

To: Tunica Albuginea who wrote (69894)	2/21/2001 4:30:50 PM
From: GST	Read Replies (1) \| Respond to of 99985

Rate cuts definitely put money into peoples pockets -- like for everybody who buys a car or a house or refinances a mortgage. Tax cuts take time as well and I have never heard any reputable economist argue otherwise.

To: Tunica Albuginea who wrote (69894)	2/21/2001 5:12:17 PM
From: Wayners	Respond to of 99985

PPI and CPI are going to have NO impact on the Fed's decision making. I've read Bob Woodward's book about Greenspan and the documented decision making in that book make it clear that Greenspan knows the difference between the two types of inflation. There is no inflation thread. How do I know. Look at the long term yields on the bond market. The bond market knows all and if they thought there was even the remotest chance of inflation in the future I guarantee they'd be demanding yields at higher than 6.75%. Bond market is always right. The Fed has lowered rates twice now and big ones. The market has now priced in neither rate cut. Market has priced in flat or negative growth to last....forever because it can't see the turnaround yet. I can see the turnaround because of the Fed rate cuts. It takes 3 cuts and then a jump in the stock market. Thats the rule. Right now buyers are staying on the sidelines waiting for the third rate cut knowing that they'll be able to get the best prices then...not now. They know, we all know that those selling now are FIGHTING THE FED. Well let them! Better prices for the rest of us in the future. Thats too bad for them!