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To: Henry J Costanzo who wrote (132223)4/28/2006 1:52:03 PM
From: Galirayo  Read Replies (1) | Respond to of 209892
 
[USD] MC .. you can Annotate them here.

Link is below the chart. Next to Print.

stockcharts.com

stockcharts.com



To: Henry J Costanzo who wrote (132223)4/28/2006 4:41:32 PM
From: skinowski  Respond to of 209892
 
Not too long ago, in 1999-2000, the Fed tried to design a soft landing for the markets, and started raising rates. The result was a collapse of the bubble in the Tech sector and a serious bear market in the rest of the market. Otherwise seemingly sane and intelligent people could be heard suggesting that Greenspan should be "taken out and shot" – for killing the golden goose, and for creating a "liquidity crisis".

AG, of course, promptly started cutting rates, trying to avert the threat of a deflationary recession. The result of these actions was a recovery in the markets - and a boom in Real Estate prices... which, in turn, led to a wave of refinancing - and large sums of money becoming available to be spent - or, invested.

Right now, the Fed is trying to chill things down... raising rates over a dozen times in order to prevent "inflation".

To make the story short, I think that any crack in RE prices - accompanied by a decline in the markets - may once again send the Fed scrambling to cut rates in order to save the world from yet another threatening liquidity crunch.