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

To: ahhaha who wrote (4999)	7/25/2002 2:40:55 PM
From: ahhaha	Respond to of 24758

Anent to my remarks are the critical part FED must play. They must raise target fed funds and increase permanent, now. These fool amateurs including the ex-Atlanta Fed president, who keep saying FED must cut, don't have a clue. We have a negative real cost of money which won't go away. The negative cost comes from structural inflation, admittedly at a slow rate of 3.5% according to the Cleveland FED's median CPI, but embedded by union contracts. At the same time with a rising ECI we have declining durable goods orders. We have declining ability to supply goods and services at current prices and rising prices driven by wages. Unemployment can't catch up with this reality fast enough. The result is major margin squeeze at every level and I haven't even factored in the 'crats attack on corporate America. That won't bear fruit until the economy is on the ropes. Then 'crats will blame Republicans unless Bush starts kicking 'crat asses. In any event FED will start creating permanent very soon whatever else they may or may not do. If the dollar starts down, they will be forced to raise fed funds rate. It's a lock that this will occur. The dollar will start declining and force FED to pump.