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Strategies & Market Trends : Ahh Canada - 2 out of 3 ain't bad -- Ignore unavailable to you. Want to Upgrade?


To: Davy Crockett who wrote (1225)3/17/2001 1:53:21 PM
From: Dexter Lives On  Respond to of 5144
 
Peter,

Well, he could raise margin rates on tech. stocks to 90%! Call it instant money! ;-)

Seriously though he did crimp banks'/brokerages' lending practices last year (that was the great signal he was going to take tech down) and it impacted Naz much more than the rate increases, imo. Encouraging lending and risk-taking should be a priority, on top of those rate cuts. Of course, for a central bank I think it's easier to discourage risk rather than encourage it - given their conservative nature.

Rob



To: Davy Crockett who wrote (1225)3/17/2001 8:57:09 PM
From: Shack  Read Replies (2) | Respond to of 5144
 
somehow he has got to lubricate the monatary supply, by opening up the printing presses in order to prevent a credit seizure. Right now credit has dried up for everybody

Pete, the M3 money supply is still growing at unprecedented rates. What more can be done? Lucent just got billions, so did Ford, even Xerox is getting money. GE Captial just gave money to the California Utilities!! Consumer debt is humming and mortgage refinancings are at all times highs. New home sales continue to be strong.

prudentbear.com

prudentbear.com

The stats don't support any sort of credit slowdown. The only place that is not getting money is the stock market. Nothing is going to help that except earnings growth which will disintegrate even with 0% rates.