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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: elmatador who wrote (50892)	6/11/2004 10:45:56 AM
From: Haim R. Branisteanu	Read Replies (1) \| Respond to of 74559

inflation has already accelerated and what they are trying to do now is to cool the RE market and a result commodity prices. the FED can not afford to raise rates more than 50 bp this year without inducing some systemic risk - more because the market anticipation that they are rising recklessly - which will send the longer term treasuries 2 to 3% higher in an economy not prepared for it and a big percentage of home owners on variable rate mortgages of 3% to 4%. A 25% hike on those mortgage payments will stifle consumption to a trickle and a new recession / deflation cycle will start