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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Knighty Tin who wrote (54027)	3/31/1999 11:13:00 AM
From: Kailash	Read Replies (1) \| Respond to of 132070

Michael - Thanks for the explanation - "if T-Bill rates go above Fed Funds, the bank inflows stop and the Fed has to make all the loans on its own with fake money. Or, raise the FF rate to attract more depositors." How do you view the chances of increased inflation? "National Association of Purchasing Management Chicago index rose to 57.0 in March from 52.9 in February versus forecasts for 52.6. Prices paid rose to 52.5 from 41.6 and the employment component rose to 53.8 from 53.1" (Reuters today) Edit: "Following the report, a huge $1 billion sale of five-year notes was reported, as were sell orders in June bond futures." The glut of products appears to be driving prices down, and as long as excess liquidity has a branch to roost on in the stock market, there appears to be no inflation. Perhaps CPI should now include a weighted proportion of stocks since half the nation is buying them?? Kailash