Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Galapagos Islands -- Ignore unavailable to you. Want to Upgrade?

To: Jorj X Mckie who wrote (44839)	7/23/2003 1:41:05 PM
From: Lazarus_Long	Read Replies (1) \| Respond to of 57110

Come now. Be real. Would Superman (disguised as mild-mannered, clerkish Alan Greenspan) do that? :-)

To: Jorj X Mckie who wrote (44839)	7/23/2003 1:48:20 PM
From: MulhollandDrive	Read Replies (1) \| Respond to of 57110

>>Don't fiddle with interest rates, don't fiddle with money supply. Let the system digest all of the stuff that has been thrown at it, so that it can reach an equilibrium<< that is more or less what i said the other day...(can't remember which thread) so the fed is saying it would drop rates to "zero" if necessary....the fight against deflation is not a "monetary" one and the fed knows it. what the fed is trying to battle with easy money policy is to stimulate capital investment. and you and i both know that it will not happen without corresponding pickup in demand. so for now i believe the best they can hope for is "muddle through" ....next fomc meeting state that there is no need for further cuts (assuming "low inflation" remains stable though stagnant would be a more apt description, imo)...so they can stand pat.... hoping that the perceived message is steady as she goes... i think the last thing the fed wants to do is lower rates, but would love to get a few more months of "no change" buying time. all the while knowing you can lead a horse to water but you cannot make him drink..(meaning increased visibility in capital expenditures)

To: Jorj X Mckie who wrote (44839)	7/23/2003 3:17:57 PM
From: zonder	Respond to of 57110

the Fed needs to read Carlos Castenada.... I actually think they have, looking at the psychedelic alternate reality they keep painting :-) Seriously, when faced with a DYNAMIC threat, as in an enemy responsive to your reaction, yes, you should do the unexpected. However, when faced with a force of nature, say an avalanche, what good does it do to do the unexpected - i.e. standing out in front of it? when met with a threat, do something unexpected Hm. The way I see it, the threat is the credit bubble that could loudly burst if interest rates nudge higher. Hence they invent the imaginary threat of "deflation". It is pretty unexpected for those of us who still believe in honesty. Let the system digest all of the stuff that has been thrown at it, so that it can reach an equilibrium. That would certainly be faster, but it would also be painful. Administrations don't like causing pain to their electorate. Fed likes low pain, long duration stuff. Not the best approach, ideally, but that's what it is....