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Politics : High Tolerance Plasticity -- Ignore unavailable to you. Want to Upgrade?

To: cnyndwllr who wrote (297)	2/25/2001 4:52:10 PM
From: Tommaso	Respond to of 23153

If you want macro, look at the latest MZM (which has taken the place of the old M1) rate of increase. The Fed is really determined not to repeat the error of 1929-1932 in allowing the money supply to contract while markets are falling. This, however, guarantees wage and price inflation--if they keep it up very much longer. stls.frb.org The monetary base graph and charts are only a little better. Notice that the Y2K panic expansion still shows there--and does a lot to explain the final run-up before the bust last March: stls.frb.org If the PPI and the CPI keep jumping, the Fed may have to stop making cuts in the discount rate. If the emergency cuts of the last couple of months can't do any more for the stock markets than they have (i.e. nothing), what will the absence of further cuts do? Although my main interest is to be long natural gas, I am sitting on a bunch of puts and on a short position in SPY, the S&P spider, as well as the BEARX I mentioned earlier.