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Strategies & Market Trends : Bonds, Currencies, Commodities and Index Futures -- Ignore unavailable to you. Want to Upgrade?

To: dvdw© who wrote (4289)	12/3/2004 9:30:51 AM
From: Chip McVickar	Respond to of 12410

dvdw, Don't know the answer to your question. IMO... The Fed studied the collapse of Japan very carefully and when the Nasdaq bubble popped they watched our journey very carefully.... adapting quickly to the potentially deflationary situation. Aggressively lowering interest rates to below inflation, creating lots of new paper, encouraged the world to create lots of paper, spend -- spend -- spend.... giving it away. The Bush folks haven't vetoed a single spending bill, so the spending has been almost unlimited.... and they have a war. This spending and technological expansion is enormous, and the potential innovative prosperity for US and its investors is enormous. But it will come and not be as expected. Doing this has pushed the monetary and economic envelope... creating imbalances.... increasing the potential for complications. Don't anybody get me wrong... I'm bullish short-term and long-term and very cautious intermediate-term especially after January and March. After 9/11 I refused to short the markets.... I BOUGHT THEM. Today.... I will short the market if my work says to... Chip