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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: gfs_1999 who wrote (72720)	3/19/2001 5:23:59 PM
From: Wayners	Read Replies (1) \| Respond to of 99985

Fed Funds target rate is way above the 30 year bond yield. Thats all there is to it. Fed Funds rate has to be adjusted below the 30 year bond yield period if the Fed wants GDP greater than 0% going forward. Fed needs to drop about another 125 basis points period. This has nothing to do with saving the stock market. All the Fed does is follow the longer term bond yields albeit about 2 months late. Is Bill Meehan a trader? No he's a journalist. What does he know? He also says rate cuts don't turn markets. He's not familiar with history either.

To: gfs_1999 who wrote (72720)	3/19/2001 5:33:45 PM
From: Math Junkie	Read Replies (2) \| Respond to of 99985

One of the things that seems kind of nuts about the market right now is that the financial media are way too focused on the Fed. They are talking as if good news in the economy is bad news for the market. The thinking seems to be that it would reduce the likelihood of a rate cut, as if that were the only thing that mattered. But it seems to me that in order for the market to ultimately turn back up, corporate earnings growth has to start back up, and in order for that to happen, the economy has to stop deteriorating. What am I missing here? Here is an article that suggests that the economic deterioration is slowing: Message 15524943