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Technology Stocks : Cisco Systems, Inc. (CSCO) -- Ignore unavailable to you. Want to Upgrade?

To: larry who wrote (60006)	6/27/2002 12:36:42 PM
From: Eric	Read Replies (1) \| Respond to of 77400

OT Larry Well the fed needs to see real inflation occurring before it will pull the trigger and raise rates. We are seeing inflation in some areas (housing in some markets but not overall) and with the economy cooking along at 6% the first qtr this year it's only a matter of time before we see rates rise. Will that 6% growth rate continue? I don't think so. Right now the housing market is keeping the economy humming but that will change fast if rates rise. Sure telcom land is bleeding now but it isn't the whole economy. What I try to do is take all the sectors in the economy and add them up to determine their weights and what they add to growth. We could argue on the numbers all day but telcom alone will not take down the growth rate in the economy very much. Probably a fraction of a %. AG does have influence though and he wants to see an orderly decline in the markets. Unfortunately we have had "shocks" like WCOM to help prick the bubble and AG has not had to act. My spin on this is the Fed would have raised rates slightly six months ago if we had not had 9/11 and now with Worldcom. JMHO Eric