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Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: LPS5 who wrote (9088)	3/17/2008 1:47:39 PM
From: Hawkmoon	Respond to of 33421

I think the Fed is waiting for the dollar to become the ECB and Asian CB problem.. Because without their cooperation in supporting the dollar, anything the fed attempts to do is fruitless.. If they both lower their rates, increase their liquidity, it will ease the pressure on the Fed to cut so drastically.. So I'm almost curious to see if the ECB is going to see the handwriting on the wall.. Afterall, with the levels of European unemployment, and loss of competitive advantage in US markets, they're setting up for far greater problems than the US might suffer. Remember the US is #65 on the list of countries regarding national debt to GDP.. Germany and France are around 19 and 20 on that list (and Japan is at the top).. Hawk

To: LPS5 who wrote (9088)	3/17/2008 2:45:26 PM
From: Lazarus_Long	Respond to of 33421

True. Then Fed DID raise interest rates as the 1929 collapsed occurred. research.stlouisfed.org Best I could find. Here. This shows the rise in short term rates for a short while after the crash. federalreserve.gov I do admit I thought the rise was longer than shown. BUT, as shown by the current mess, the answer to a bubble burst is NOT to take interest rates to a ridiculously low level. All you do is ignite another bubble - RE, in the current case. It is unlikely to be the former investment vehicle because of disillusionment engendered by the burst. Nor its it absurd bailouts, such as JPM-BSC. This is a capitalist system. You pays your money, you takes your chances. Socialist nad Communist system bail out anything that gets into trouble- -and function poorly as a result. Moving rates up? If my choice is between up and down, I pick up. I'm sure the Fed disagrees.