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


To: TATRADER who wrote (28435)3/25/2002 7:01:14 PM
From: Rashid Garuba  Read Replies (2) | Respond to of 59879
 
Mark,

Got this little tit-bit from Financialsense.com

"The Perfect Financial Storm
The one positive factor for stock prices may be the Fed itself. There was a story in today’s Financial Times about how the Fed considered propping up stock prices if short-term interest rates didn’t revitalized the economy. In the minutes from its January FOMC meeting the Fed talked about taking an unconventional approach to rescuing the economy if it deteriorated substantially. If short-term interest rates failed to arrest an economic decline the Fed would consider a plan to buy U.S. stocks to prop up the economy. Fed officials were afraid a situation similar to what happened in Japan would evolve in the U.S. The scenario discussed would only be a last desperate measure to employ if the economy continued to deteriorate. This points to how important stock prices have become to the well being of the economy. Although this situation was avoided, it is on the table for the future if monetary and interest rate policy proves to be ineffective in rescuing the economy from recession. In effect, the Fed would liquefy the entire stock market. The Fed official who was questioned on the matter asked not to be named, but said the Fed "Could buy anything to pump money into the system, including state and local debt, real estate and gold mines-any asset."

Under traditional monetary policy the Fed relies on the buying and selling of Treasury bonds to affect short-term interest rates. If that doesn’t work in the future, the Fed may consider buying any asset class to monetize. This is a rather frightening thought when one considers the implication of these comments, or the fact that they are even considered. It would be tantamount to admitting the outright failure of monetary policy. The predicted outcome could backfire on the Fed with a complete loss of confidence in the financial system and in financial paper of all varieties. Under these circumstances, we would find ourselves in "The Perfect Financial Storm."

Interesting times Mark... Rashid



To: TATRADER who wrote (28435)3/26/2002 6:12:20 AM
From: sammy levy  Read Replies (1) | Respond to of 59879
 
Hi Mark
<<<Have not had much luck with AIRN>>
I think I know why...lol...u got in after the "pop".
With AIRN u have to get in when it is down and wait for the news,period.Don't go much by the indidcators.
I have a few K of this stock and I am holding on,not trading,I like the way the company conducts itself and the progress,think it has a very prosperous future.
They had 3 shows in Europe and Brazil (last 10 days)this should bring more customers and another pop...lol
Sammy