Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Amateur Traders Corner -- Ignore unavailable to you. Want to Upgrade?

To: Kevin Podsiadlik who wrote (17121)	12/9/2001 1:29:04 PM
From: Sharck	Respond to of 19633

Joined Kevin with a .25 cut next FOMC....

To: Kevin Podsiadlik who wrote (17121)	12/9/2001 2:37:33 PM
From: RockyBalboa	Respond to of 19633

You may be right witht the dichotomy. But I believe that the fed's wasting its ammo. The ECB did not cut the interest rates (3.5%) last week. If the fed is sticking with its easening bias (which it does, per different news stories) then it appears that things are worse than assumed and there is no recovery in the economy. This reflects the thought that the propensity to invest is low and the short term liquitidy stays high.

To: Kevin Podsiadlik who wrote (17121)	12/9/2001 3:53:06 PM
From: Tom Hua	Read Replies (2) \| Respond to of 19633

Kevin, not at all inconsistent. No cut will be viewed positively by WS. It means the Fed feels the economy is at the onset of a recovery and that of course is bullish for equity. Zero cut will send markets roaring. Another rate cut simply says the economy is still declining and the timing of a recovery is anybody's guess. A 25 bp is 100% priced in, all 24 government bond dealers predict 25. There's not even a 1% chance that Greenspan will deliver anything but 25. It's cast in concrete, a done deal. FOMC decision poll: 6 for 0 bp 13 for 25 bp 0 for 50 bp. Regards, Tom