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Strategies & Market Trends : Steve's Channelling Thread -- Ignore unavailable to you. Want to Upgrade?


To: Zeev Hed who wrote (11644)2/23/2001 3:46:57 PM
From: anon  Read Replies (1) | Respond to of 30051
 
Zeev, what are your thoughts of the fed cutting rates in march 20? What odds do u give it? TIA



To: Zeev Hed who wrote (11644)2/23/2001 4:02:42 PM
From: Crimson Ghost  Read Replies (1) | Respond to of 30051
 
Zeev:

The need to avoid a "black Monday" a la 1987 is reason enough for the Fed to cut IMHO.



To: Zeev Hed who wrote (11644)2/23/2001 4:04:41 PM
From: Jdaasoc  Read Replies (1) | Respond to of 30051
 
Zeev:
it will have no "ammunition" left later in April when the gory results of this quarter come to the fore

Manufacturing has been the dumps for a good 6 months now. If AG doesn't act forcefully, the consumer will shut down the manufactruring sector for at least another 6 months.
If there really is some hedge fund damage to fear, increased liquidity is part of the answer.
I just think the effect of increasing energy prices, which has definitely peaked, has just about worked it's way into CPI/PPI and if we are really in recession with energy prices stable or falling will just take a few months to reflect a more tame CPI/PPI sinking the stagflation fear.

john



To: Zeev Hed who wrote (11644)2/23/2001 11:36:04 PM
From: Mike M  Respond to of 30051
 
The Feds should not act because of the market.

Agree with you there. But it is time to do something about the liquidity of the economy. The next interest rate movement (the third) does have market psychological implications but, more importantly, it serves to reliquify the business community via our banking establishments. We don't need to wait any longer for that....to heck with the market discounting mechanism.