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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: James F. Hopkins who wrote (28095)	9/16/1998 8:13:00 PM
From: Elllk	Read Replies (1) \| Respond to of 94695

Jim Re: <<And he will lower or raise rates when his real bosses tell him it's time, & he is so smart that he don't even know who they are.>> Here's my macro, non-technical theory. Greenspan, Rubin, et al (assuming they are still with Clinton) would like to engineer a rally for something like second half of October -> early November to improve attitude about the economy and about Clinton and thus minimize losses or (not likely now) maximize gains for Democrats in the election and thereby give Clinton as much leverage as possible in the Congressional negotiating over the outcome of the Starr Report. Perhaps the best way to do this is to downplay an interest rate drop now and sometime early to mid October hint at a rate drop in November. That might get a nice rally at the right time with renewed good feelings about the market also bolstering Clinton's ratings thus helping him to make as good a deal as possible with Congress as to what goes down. Once the election is over or a deal is made, they are no longer under the gun thus, can and will, of course, do what they want. Larry