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Strategies & Market Trends : VOLTAIRE'S PORCH-MODERATED -- Ignore unavailable to you. Want to Upgrade?

To: djia101362 who wrote (31620)	2/21/2001 8:48:03 PM
From: KyrosL	Read Replies (3) \| Respond to of 65232

What makes you think that an unscheduled .50 rate cut will help the market? The last two .50 cuts, one of them unexpected, did not help much. A rate cut before the regular March meeting may actually hurt stocks. Given the ugliness of the latest PPI and CPI numbers, markets may conclude that the Fed does not care about inflation. The resulting Fed credibility loss may prove deadly for the dollar as well as US bonds and stocks. And it's not just US investors we need to worry about. Foreigners hold 40% of US treasury bonds, 20% of US corporate bonds and some 10% of US stocks. They can easily tank our markets, if they decide to sell. It's hard being a debtor nation. We are increasingly depending on the kindness of friends and strangers.

To: djia101362 who wrote (31620)	2/21/2001 9:23:15 PM
From: CAtechTrader	Respond to of 65232

Moral Hazard is everywhere. Dr. G included. washingtonpost.com

To: djia101362 who wrote (31620)	2/22/2001 5:06:15 PM
From: critical_pants	Respond to of 65232

I've never been convinced that Greenspan specifically targets the NASDAQ. If he wanted a surgical hit on the NASDAQ, he has the power to increase margin collateral requirements. To date, he has not touched those. I doubt he will now. It is too late. I'm not sure that another rate cut would help now either. Somehow, traders need to become investors. No one is in it for the long term. There is no way for a rally to develop when so many pop in and out for the quick profit. Not that I blame anyone -- right now long term DOES look like a recipe for disaster.