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Strategies & Market Trends : The Millennium Crash -- Ignore unavailable to you. Want to Upgrade?

To: Stoctrash who wrote (3268)	8/28/1998 10:21:00 AM
From: Tommaso	Respond to of 5676

It may not matter for a while what he does, if people get scared and banks get scared and we all stop borrowing and lending and spending money. The rather sudden deceleration in money supply growth may indicate this is already starting to occur. Mitlon Friedman never ceased to excoriate the Fed for not increasing the money supply in the 1930s, and I guess any time they want they can start buying in U. S. treasuries with newly-created money. That would pull interest rates even lower.

To: Stoctrash who wrote (3268)	8/28/1998 11:10:00 AM
From: Rarebird	Read Replies (1) \| Respond to of 5676

Greenspan must lower rates by the end of the year. The question, as my more Bearish friends will also tell you, is what good will it do in a deflationary environment? One need only look at Japanese interest rates. Will lowering interest rates stimulate demand and buying? In an environment like this, the first rate cut will produce a rally for a day or two. But then a major sell off! Why? Because investors get confirmation of their worst fears, that Deflation is near at hand, which precipitated the Bear to begin with. It's a very difficult cycle to break once it BEGINS! The key is to solve the problem where it originated: Japan. It's an Asian contagion. The U.S.A is not exempt. Why? Because ultimately, it's a Global economy.