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Strategies & Market Trends : ahhaha's ahs -- Ignore unavailable to you. Want to Upgrade?

To: Elsewhere who wrote (4941)	7/22/2002 9:10:12 PM
From: ahhaha	Read Replies (1) \| Respond to of 24758

If FED wants to reverse the market, they only need to get out of the money market or start raising the federal funds rate. Maintaining a negative real cost of funds is driving the dollar and stock market down in anticipation of uncontrollable structural inflation downstream. At least this is the prevailing and unexpressed expectation of the players. In this assessment the players are all wrong and the FED knows it, but the players don't trust that it is all wrong, and it may not be all that wrong. However, it's a surety that whatever the players have finally learned, is finally wrong. The only question is how long will it take before they figure that out. Similarly, the FED could persist with yet another continuing mistake by fixing the fed funds rate. We simply don't know what the fed funds rate would be if the FED stopped interfering. Presumably, it wouldn't rise much because of the paucity of loan demand, but a rising rate may revive loan demand on its own!