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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Steve Lee who wrote (81470)	8/18/2001 10:27:02 AM
From: Patrice Gigahurtz	Read Replies (3) \| Respond to of 99985

You raise a good point and your view is compelling and one I suspect Mr.G could use to defend his streak of rate hikes. However I disagree, as in my view raising % rates coupled with the taxing effect of rising energy prices was a foolish move that further nailed the coffin on the so called Goldielocks economy for many companies other than techs. Also, the Feds major failing was they were always looking for what didn't exist (inflation as a function of too many Americans working, etc) and to this day inflation isn't there to speak of. So why did he raise rates when inflation didn't exist ? Are you suggesting that the Feds raises % rates as a function of a higher stock market(s) and that it was the latter that disturbed the Feds and NOT inflation pressure which didn't exist ? If so, is that a role the feds should be following, adjusting % rates to their personal level of where the stock market(s) should be ? Should the Feds be messing with our stock markets or are they there to watch over inflation ? We now have a stock market with few buyers, isn't that a liquidity problem ? Is it the Feds job to lower liquidity ? I suggest that the Feds not toy with stock market(s) activities via % rates. If they want to chat about "irrational" this and "irrational" that that's fine, but to adjust % rates to their personal level of where they think the stock market(s) should be is nuts ! Thanks