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Strategies & Market Trends : Stock Attack II - A Complete Analysis -- Ignore unavailable to you. Want to Upgrade?


To: Jerry Olson who wrote (20072)9/26/2001 4:32:38 PM
From: Paul Shread  Read Replies (2) | Respond to of 52237
 
Jerry,

I'd be ecstatic if the Fed could cause inflation. Nothing at the moment is predicting that, IMHO.

Look at Japan - stimulus is worthless in a deflationary environment. We've already got an economy that seems immune to rate cuts and massive liquidity pumping - we've got to at least consider the possibility of deflation - that's the only historical precedent for this.

Paul



To: Jerry Olson who wrote (20072)9/26/2001 5:12:42 PM
From: Condor  Respond to of 52237
 
OJ is IKE OK?
C



To: Jerry Olson who wrote (20072)9/26/2001 5:23:21 PM
From: Logain Ablar  Read Replies (1) | Respond to of 52237
 
Hi OJ:

While I agree with just about everything you say on the inflation front (especially if the $$ weakens) with all the job layoffs, world economic slow down and drop in energy / comodity prices there is now some mitigating factors.

Maybe its the 5th false signal?? <gg>

Anyway it looks like the FED is about to drop the rate below the trailing inflation rate (2.5 is below 2.7). I think this is a first. Indicates the FED thinks inflation drops some more with deflation a big threat.

The deflation environment is not good for borrowers. If we are in a depression type scenario like the 30's refinancing to take on more debt is not the way to go.

Best

Tim