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Strategies & Market Trends : Currencies and the Global Capital Markets -- Ignore unavailable to you. Want to Upgrade?

To: Peter Singleton who wrote (1333)	2/28/1999 3:39:00 PM
From: Enigma	Read Replies (1) \| Respond to of 3536

Yes - there's a lot of sentiment (hope) around for a nice little goldilocks correction? dd

To: Peter Singleton who wrote (1333)	2/28/1999 3:57:00 PM
From: Zardoz	Respond to of 3536

"I agree with you real US interest rates are incredibly high right now. However, how do you explain interest rates going up after the Fed's easing?" M2 is a measure of liquidity, and masks inflation. It is one of the missunderstood component of inflation. Real rates are high, if you compare them to CPI inflation only. But when you add Growth, GDP deflator, and M2/M3; then real return actually drops. When the Fed lowered after Aug, it was the wrong thing to due. But they also raise M2 rate higher yet. They prevented a meltdown of equity, by postponing it till later. They took what should've been a correction to 6400, and made it possible for a correction to 5000. Greenspan goofed, in his attempt to add stability to the world economics.