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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Tom Gordon who wrote (901)	10/3/2001 11:10:23 AM
From: JoanP	Read Replies (1) \| Respond to of 306849

Tom, more from Hahn's perspective on the interest rate cuts: U.S. central bank makes 9th cut of year, bringing rates to 40 year lows. The Fed's emergency actions make it look like the Japan Central Bank of a decade ago. There may be a difference this time. The Fed is acting with such aggressive irresponsibility, inflation may actually take of sooner rather than later. It's unclear whether the economy will rise with inflation, as Greenspan wants. Hopefully he will be sucessful, because if he's not, we'll have a return of the 1970's style "stagflation." Tuesday's rally was only in the Dow stocks. Nasdaq did not participate. The only way the Fed would move by 0.50% would be if they knew Friday's unemployment number was going to be awful. Also cautions that quarterly statements for mutual funds and 401(k) will be going out to shareholders. Do not underestimate this event. For the quarter, the Nasdaq was down 30.7%, the DJIA was down 15.8%, and S&P 500 down 15.0%. The harsh reality of seeing quarterly statements showing another loss of capital may make October a very rough month for stocks. I enjoy reading your comments, Tom. Best wishes.