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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: tradermike_1999 who wrote (3088)	4/18/2001 1:20:18 PM
From: Tommaso	Read Replies (1) \| Respond to of 74559

As I guess you know, MZM is currently rising at over 28% annual rate. Now we get this interest rate cut. If we were Brazil, this would be par for the course. All I can figure is that the bad inflation of the 1970s and 1980s left many fewer scars than did the Great Depression, and the Fed has decided that inflation is the way out. Some character in one of Hemingway's novels--maybe it was in "A Farewell to Arms"--says: "When governments are in trouble, first they inflate the currency. Next, they start a war." And we aren't even in trouble.

To: tradermike_1999 who wrote (3088)	4/18/2001 2:33:52 PM
From: JMD	Read Replies (2) \| Respond to of 74559

tradermike, the prospect of excess liquidity a year or so down the road triggering a potentially serious round of inflation has to be taken seriously. In turn, that raises a 'safe haven' question, specifically: buying bonds to avoid losing one's butt in the equity markets may not look too ingenious if one then proceeds to lose the butt one saved in the bond markets courtesy of an inflationary spiral. My personal tastes rule out cookie jars, bedsprings, and gold bars. Anybody got any better ideas? regards, mike doyle