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Strategies & Market Trends : Steve's Channelling Thread -- Ignore unavailable to you. Want to Upgrade?

To: Zeev Hed who wrote (18892)	6/27/2001 10:20:34 AM
From: Kailash	Read Replies (1) \| Respond to of 30051

Morning, Zeev - So far the 2078 is holding. There is a breathless anticipation of what the great man will do -- I'm not sure I see the logic. Any move can be interpreted positively or negatively and the real issue is not the Fed's action today but the actual state of the economy. Whatever the Fed does today shouldn't have any economic effects until months from now -- in fact we don't even know the effect of the previous cuts yet. So the action is seen as symbolic -- but it's symbolic in a vacuous way, as a signal of the health of the economy for instance, when the health of the economy should be evaluated independently and not indirectly through the Fed's actions (Briefing's take on this is actually slightly absurd). It's interesting to note, incidentally, that Duisenberg's take is the opposite of Greenspan. He just decided not to cut rates: The ECB now believes that overall eurozone growth will be 2-2.5% this year, sharply down from last year's 3.4%. But Mr Duisenberg insisted that his job was to monitor inflation, not boost growth. "There's nothing that monetary policy can do about this," he said. "The most that we can do is create a stable atmosphere." news.bbc.co.uk After spending months expecting Greenspan to rescue the economy, we'll soon be faced with a situation where he can do nothing more. So do we get a big disappointment, psychological withdrawal symptoms from the Greenspan high? Kailash