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To: David Zgodzinski who wrote (168598)5/28/2002 8:13:38 PM
From: orkrious  Respond to of 436258
 
when does the Fed first raise rates to defend the buck?



the fed is f*cked. if they raise rates, all of the profits of the companies who swapped long-term debt for shorter term paper will disappear.

all of those companies who did this to inflate earnings to pump up their stock price are screwed.

no profits (like there were any before) means no investment. no investment means no recovery.

a tanking stock market and higher interest means consumers will reign in their spending, further exacerbating the problem.

the fed is f*cked. my shorts and golds should do just fine though.



To: David Zgodzinski who wrote (168598)5/28/2002 10:55:17 PM
From: patron_anejo_por_favor  Read Replies (1) | Respond to of 436258
 
My guess is September or thereabouts. They won't raise it in June, or "the terrorists will have already won!"