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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?


To: Ilaine who wrote (16558)3/7/2002 10:03:19 PM
From: Don Lloyd  Read Replies (1) | Respond to of 74559
 
CB -

...sometimes they get synchronized, and if they are all synchronized together, watch out....

Synchronization is exactly what happens when the FED drives the economy by injecting money and depressing the market interest rate below its natural level. Most economic segments are sensitive to the interest rate to one degree or another. If you had a thousand different clocks in a room all with large errors in timekeeping rate, and you keep resetting them at the same time, they will stay in pretty good agreement for a while until you reset them again.

Regards, Don