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

To: Box-By-The-Riviera™ who wrote (3914)	5/27/2001 9:09:40 AM
From: smolejv@gmx.net	Read Replies (1) \| Respond to of 74559

excerpt from the editorial in Boerse Online Wk 22/01 A practical joke with serious consequences by editor-in-chief Hans G. Linder ..."When explaining the surprising rate cut on May 10th EZB-president Duisenberg already mentioned the fact, that the official M3- numbers are overestimating the real increase in the aggregate. In the latest monthly report central bankers now confess, that the distortion is far greater than their initial estimate. The fatal point is that after correcting for the error, that is supposedly in the order of one percent, the money supply growth drops below the EZB's target of 4.5 percent. According to the currency watchguards' gospel M3 is the best indicator of the future price developments, so there's only one conclusion allowed here: inflationary dangers have been smaller than openly admitted. Final consequence of this line of thought is that the central bank not only could, but should, lower the interest rates much sooner. Probably the negative developments in European economy, labor market, Euro exchange rate and stock prices could have been avoided..." PS: Boerse Online is the most widely read (I guess ...g) investment weekly in Germany.