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

To: thebeach who wrote (30762)	10/8/1998 5:12:00 AM
From: Philipp	Read Replies (2) \| Respond to of 94695

if the fed eases one full point we will be at a better point to finally head north again,in 1987 the fed eased by a point within days of the crash. They did and undoubtedly they will do this again, though they will be a bit more careful this time, since last time the Fed overreacted by easing too much after the stock market correction, thereby causing inflation and the next severe recession. But again, I can only repeat that I think that you are wrong in comparing now to 1987, since the situation is far more critical. Also, if there really were a threat of deflation, as people have started to talk about (I don't know whether it is realistic or not, but it certainly is being discussed in the media), interest-rate cuts won't be much help (see Japan). Regards, Phil