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Strategies & Market Trends : Three Amigos Stock Thread -- Ignore unavailable to you. Want to Upgrade?

To: Redhead who wrote (8295)	9/2/1998 2:11:00 PM
From: Ken W	Read Replies (1) \| Respond to of 29382

Redhead, If I may butt in for just a second and offer a view as to why Greenie will not drop the rate. Credit spending is at an all time high. Credit card co's are sending heavy plastic to teenagers, low income, and even my 21 year old son. He has so much debt he can't afford to feed his dog. What happens is folks spend the plastic and then go bankrupt. If greenie drops the rate it would only encourge more plastic spending. Guys where I work are chomping at the bit for a lower interest rate as we are rumored to get a raise soon. "Boy, do I want that new Ford Dualy truck" It's only 36K....give me a break!!!!! A rate drop would help some as far as the market goes I think, but, Over spending is over spending and that is one of Greenie's main ticks. If he sees too much spending on a weaker dollar he will go the other way on us....we do not need that. Ken

To: Redhead who wrote (8295)	9/2/1998 6:18:00 PM
From: Sergio H	Read Replies (1) \| Respond to of 29382

Ken's post was very good. Take his answer and apply it to not only individuals, but also to businesses. Loosening of credit would cause our industries to get ahead of themselves, to expand too quickly, overheat and burn out. On the other hand, credit tightening would put our goods further out of reach in the global markets. Looks like the Fed has done a great job to get us where we are, but the problems around the world take us out of the driver's seat. What choise does Greenspan have now but to stay on course ? Clues to what the future brings will come from watching developments in the European Common Market, particularly Germany and how Japan manages to fight its credit problems. Red, I agree with your FISP. We're not out of the woods until the daily nervousness expressed in the daily volatility is gone from the market. In the meantime, market conditions are daytrader heaven, for anyone interested or so inclined. Sergio