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Strategies & Market Trends : P&S and STO Death Blow's -- Ignore unavailable to you. Want to Upgrade?

To: _scar_face_ who wrote (23720)	1/12/2003 12:23:03 PM
From: Zeev Hed	Read Replies (1) \| Respond to of 30712

I still think that the feds should have raised rather than panic a leave no room on the downside. A minor rise on the short side of the rates (where the Feds are active) may have less of an impact on long term rates than giving preference tax treatment to dividends, which compete with longer term and corporate rates. Mortgage rates are typically tied to the ten years treasuries, where the impact of the proposed tax changes are greater. The reasoning behind a raise in the short term rate was its impact on "market psychology" and on corporate behavior as far as their own capex. Zeev