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Strategies & Market Trends : TATRADER GIZZARD STUDY--Stocks 12.00 or Less..... -- Ignore unavailable to you. Want to Upgrade?

To: TheBusDriver who wrote (25242)	10/8/2001 12:01:10 AM
From: Zeev Hed	Read Replies (2) \| Respond to of 59879

Wayne, listen to me this time (with my caveat about the $325 level), read your own citation: A money supply increasing faster* than the available pool of goods, services, and investments on which to spend it creates inflation."*, the fact of the matter is that money supply increase is not faster than the available pool. Crude consumption is trending down, and the supply is a simple question of bringing on line existing capacity. Cars production capacity is about 40% to 60% above demand. Semi capacity is about 40% above demand (In Taiwan, the major fabs are operating at between 25% to 30% capacity, there, capacity is between 300% to 400% of demand), and you surely know the problems of capacity in telecoms (see the recent problems GX is running through). No, money is not going to go after goods and cause inflation, not yet, it will go into financial assets and cause a temporary inflation in those assets. So far, companies have no pricing power, a prerequisite for inflation. That is why a week after the disaster, I have unzipped my bear suit and have put on a nice pair of bull horns. Good luck out there. Zeev