Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

To: Tony Viola who wrote (128418)	2/27/2001 4:19:38 PM
From: GVTucker	Read Replies (1) \| Respond to of 186894

If the Fed cuts rates by 50 bp some time this week and then 50 bp again at the regular meeting in March, there is a very real chance that the real rate of interest would be negative. That is not conducive to containing inflation that is accelerating.

To: Tony Viola who wrote (128418)	2/28/2001 8:40:10 AM
From: William Hunt	Read Replies (2) \| Respond to of 186894

Tony -Good Morning ----Is this what the FED is all about ? foxmarketwire.com It is ironic that a year ago the FED was worried about too much growth and that inflation might take off . Well the CPI for 1999 was 2.7% and 2000 was 3.5% ----- the increase due mainly to oil prices which the last time I check they have no control over . My understanding of the FED responsibilities is to control inflation and to grow the economy . As we both have discuss in the past productivity is the only true counter balance to inflation . The two ways to increase productivity is through technology or laying people off ( doing the same job with less people ). The Fed has decided the later course due to the dramatic increase in inflation ( .8% year over year ). The real problem now is that productivity is less than inflation thus causing stagflation ( profit recession ) . You wonder if this whole past year has been an ego issue since the logic for what has happen totally escapes me . As an investor it is hard enough to research a stock or mutual fund to decide what to do with your future . Then when we make a decision and take the risk as a shareholder you watch the company for innovation , fiscal responsibility etc to get a fair return on your money . Throw in a little luck and you see a fair rate of return . The real issue this past year has been a group of men that are out of touch with what they effecting . They are using data and making decisions base upon economics models that need to be re-adjusted for a different world . The logic of destroying a healthy economy for a .8% increase in inflation would and should have you looking fo a new job . This one issue has investors pulling out of the marketplace- when you are required to take all the risk and you have no way of counterbalancing a group of people destroying the economy . Really cannot blame them ---wish I had done the same but now have a lot of paper ( shares ) waiting for a return some day . I agree more with the Democrats ( independent voter ) on the tax cut due to what the FED has done to the economy . Decrease growth will drastically slow tax receipts and you cannot give back what you do not have . Something needs to change at the FED in the way they run the economy ---I guess the issue is can an old dog learn new tricks ? In this case I am not so sure . BEST WISHES BILL PS If Congress really wanted to have a long term effect on people's life they would work with Bush on truly developing a national energy policy . The environment is important but it is fact of life that we require energy resources to make the economy work