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Non-Tech : Derivatives: Darth Vader's Revenge -- Ignore unavailable to you. Want to Upgrade?

To: Frodo Baxter who wrote (182)	9/25/1998 3:43:00 PM
From: ahhaha	Respond to of 2794

We'll see the effects of fed pumping in coming weeks. Let's assume 7.2%. Yellen claims GNP is rising at 2.5%. That gives 7.2 - 2.5 = 4.7% intrinsic inflation. Of course, you could argue with the demand management camp that velocity will intercede, but the slack isn't there to buffer much. That's what I've been arguing all year long. Now what happens to that number if the yr to yr moves up to your short run 15.6%? We know that won;t happen because FED won't push rates down. We know that, don't we? The SOMC is already started to beat the drum after a long hibernation. Maybe money doesn't matter. No one acts that way.