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To: yard_man who wrote (105781)5/31/2001 1:37:16 PM
From: Nadine Carroll  Read Replies (4) | Respond to of 436258
 
tippet, I cannot understand how any coming stock/real estate collapse can be deflationary while the Fed is printing dollars at such an amazing clip. Isn't stagflation the more likely scenario?

BTW, I just heard that Frontline will run a program on the California energy crisis. Blackout will air next Tuesday on most PBS stations.



To: yard_man who wrote (105781)5/31/2001 2:46:20 PM
From: John Pitera  Read Replies (4) | Respond to of 436258
 
One thing that will limit the FED and their rate cutting is that Long-Rates are going up The FED can
ease another 150 basis points but if you've got a floating rate mortgage and the long end of the bond market goes
up 75 basis points in yield, you are paying more for your monthly payments.

The same thing applies to corporate borrowers. one thing to consider.