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Politics : High Tolerance Plasticity -- Ignore unavailable to you. Want to Upgrade?


To: Gottfried who wrote (17562)11/6/2002 1:24:14 PM
From: pvz  Read Replies (1) | Respond to of 23153
 
Well, on Raptor's thread for one, there is now a discussion underway on removing the noise level. Still, since this isn't particularly scientifically measurable, it's probably also not worth dwelling on too long either...

On a more serious note, I have a question for the thread... my grasp of Economics was never that great so I might be missing something in the bigger picture here, so please be patient: the $tnx (10 yr yield) seems to be giving quite a nice buy signal here, both daily and weekly. The five year yield is moving up in similar fashion. Why then, would the Fed be cutting interest rates? - and half a point at that? I thought the Fed followed the market?

stockcharts.com[g,a]dbclyyay[pb20!b50!b200!i][vc60][iut!ue12,26,9!ub14!ud20!ll14!lp14,3,3!lah12,26,9!lo14!lh39,1][J7600319,Y]&listNum=19

Also, with a weaker dollar that is on the verge of breaking down (if it doesn't hold 105 or 103 at a push), wouldn't a Fed rate cut entice even more dollar outflows to better yielding pastures, and thereby increase the risk of that key support not holding?

stockcharts.com[g,a]dbclyyay[pb50!b20!f][vc60][iut!ue12,26,9!ub14!ud20!uo28!ll14!lp14,3,3][J7940689,Y]&pref=G

The more I think about it, the more arguments I can think of for not cutting rates. Why is the market clamouring for a rate cut that would only act like sugar syrup to appease a whining toddler?