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

To: John who wrote (72872)	3/20/2001 3:33:57 PM
From: Casaubon	Read Replies (3) \| Respond to of 99985

you think the differnce between 50 basis points and 75 basis points cut is what differentiates a healthy market from an ailing market? Hmmmmm.

To: John who wrote (72872)	3/20/2001 3:51:46 PM
From: Saulamanca	Read Replies (1) \| Respond to of 99985

The Fed cuts rates 1 1/2 points in less than 3 months. Market that expects too much is likely to be disappointed. Confucius Hard to break momentum...up or down

To: John who wrote (72872)	3/20/2001 4:26:31 PM
From: WTSherman	Read Replies (3) \| Respond to of 99985

I think that today's rate cut was a clear message to the market that the Fed is not going to let Fed interest rates be too closely tied to stock market(s) performance. Its a deadly trap that AG has tried to avoid and today was his chance to send the clear signal that his job is not to try to prop up the markets. That said, there is a clear point at which market weakness will have a crushing effect on the economy, but, we aren't there, yet. You also have to consider the fact that the Fed has traditionally tried to make sure that it had some weapons left if things got really bad. Dropping rates too low, too fast isn't the greatest idea and certainly not a good policy when unemployment is still in the 4's.