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To: John Koligman who wrote (9203)9/27/2001 3:10:16 PM
From: Crystal ball  Respond to of 10934
 
Right everyone knows we are going to ZERO rate, that is the Fed rate minus inflation or below that, well into "FREE MONEY" that is, I mean, OPEN CARRY for banks, and that is where the money supply always get recreated. Japan is there now, at ZERO. The Federal Reserve FOMC will do 50 basis points next week, and another before the end of the year, that's 150 basis points, and maybe more. They have plenty of room. The dollar is OVERVALUED because interest rates, Treasury rates, and thus the demand for SAFEST US PAPER was highest due to the Greenspan failed monetary policy of raising rates the past 19 months, to fix an imaginary fear of inflation, a problem that was not broken. He broke the economy and the markets, he should fix it or resign. Capital gains cuts and an increase in the minimum wage, with some inflation, will repair all these problems, especially now that OIL CURRENCY is fairly priced at $22 per barrel (Stable between $20 and $25 as I predicted).
I am not saying the FED will follow Larry Kudlow's advice or my predictions, I just think that necessity now will force them to do so, Bush is more than willing to use fiscal policy for tax cuts and economic stimulus.
I am,
Truly your$,
-Crystal Ball



To: John Koligman who wrote (9203)9/27/2001 6:04:58 PM
From: Jacob Snyder  Read Replies (2) | Respond to of 10934
 
re: next suggestion???

The Japanese, I think, have been vaguely thinking about negative interest rates. A sign of desperation. With stocks at current levels, their entire banking sector is insolvent.