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Politics : Dutch Central Bank Sale Announcement Imminent? -- Ignore unavailable to you. Want to Upgrade?

To: Lucretius who wrote (3161)	1/21/1999 12:33:00 PM
From: Ahda	Read Replies (1) \| Respond to of 81071

the economy is directly tied to the stock mkt as it never has been before. You are correct in this assumption in my mind i was trying to get figures once to prove this out. It is a time where pe's are negated entirely and gold bugs tend to see earth. I can't call it. I think somewhat as you but more towards Asia will pull out and we sink in long range not tomorrow.

To: Lucretius who wrote (3161)	1/21/1999 1:19:00 PM
From: Zardoz	Read Replies (1) \| Respond to of 81071

"..the stock mkt is tied to the economy." Yes I agree with that. "economy is directly tied to the stock mkt" No I don't agree with that. Greenspan may agree with you, but not a true monetarist. If you look back to the 1987 correction/crash you'll see that it was due to a lack of liquidity from M2 cash flow rates. And then agains in OCT. But a correction need not cause a economic downtrun. I really don't see the debt problems as being important. But I do suggest that the true inflation rate in the usa is around 2.3% and climbing rapidly. Liquidity is the KEY to the DOW, and the economy. Not the other way around. This is what the 30yr bonds are telling you. Inflation is not as low as you think, bias is towards raising, and the liquidity is drying up. Raise the rates, raise the US cash inflow, raise the bux. This will lower the DOW, lower the NAASDAQ, and lower the gold. Thus creating faster cash inflows...