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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: ild who wrote (57777)	4/10/2006 1:13:09 AM
From: CalculatedRisk	Respond to of 110194

The FED's Year 2000 Transcripts angrybear.blogspot.com The FED missed the slowdown in 2000. I wonder if its happening again.

To: ild who wrote (57777)	4/10/2006 1:14:05 AM
From: ild	Read Replies (1) \| Respond to of 110194

CEO pay jumped 15.8% last year, lifting top executives' median compensation to $6 million, according to an analysis of 350 companies. Firms are facing pressure to rein in compensation as the SEC plans tougher disclosure rules. online.wsj.com

To: ild who wrote (57777)	4/10/2006 8:21:52 AM
From: Rarebird	Respond to of 110194

From such low levels, to gradually raise short term interest rates over such an extended period of time only increases inflationary expectations. Since the POG competes with money market instruments and bonds, if the Fed was really sincere in dampening inflationary expectations, they would have raised Fed Funds 50 basis points at each meeting. But the economy was too leveraged to handle that. So, the Fed had no choice but to embrace an inflationary boom. 5% Fed Funds is cheap if equities rise 10% year over year. The Russell 2000 rose more than that just in the first quarter alone. So, rates are still quite low.