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Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Jorj X Mckie who wrote (4344)	8/10/2001 10:43:56 AM
From: John Pitera	Read Replies (1) \| Respond to of 33421

A drop to $20 dollar a barrel if we see it too quickly will be both deflationary and destabilizing. and both of those are bearish circumstances. The Street earnings models are not ready for the loss of earnings in energy related sectors. A quick drop to $20 a barrel would just create a further deflationary bias to the economy, most likely also cause a further US Dollar sell-off (due to the correlation between the 2 markets) and make the central bankers job of reinflation of the macroeconomy that much more on an intractable problem. John