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Strategies & Market Trends : LastShadow's Position Trading -- Ignore unavailable to you. Want to Upgrade?

To: jtech who wrote (42296)	4/17/2002 2:56:33 PM
From: LastShadow	Read Replies (1) \| Respond to of 43080

10:11 ET Greenspan downplays housing bubble thesis : In his testimony, Greenspan makes a case against the existence of a housing bubble - a popular theme that made the cover of the latest Barron's. Greenspan says that due to low turnover in the housing market and the lack of arbitrage opportunities, bubbles can arise in local markets but are less likely on a national scale. Comments are friendly for homebuilder stocks. 10:08 ET Greenspan says strength of expansion not clarified : Greenspan notes that his testimony reflects his views and not necessarily those of the Fed, but they are clearly friendly for the market. Though he acknowledges that rates must eventually rise, which is obvious, he says that due to low inflation and the lack of corporate pricing power, the Fed can wait until "sustained, solid economic expansion is in view" - he then goes on to say that the strength of the expansion "remains to be clarified". These two statements taken together make it clear that Greenspan is not yet ready to raise rates.