Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: BSGrinder who wrote (54961)	4/7/1999 1:14:00 PM
From: Tommaso	Respond to of 132070

I was just comparing the Federal Reserve release from last week with the one for February 4. bog.frb.fed.us In the 3 months ended December, 1998, the monetary aggregates had been growing: M1:6.8% M2:11.2% M3:13.3% This adequately accounts for the money that became available for continued speculation, particularly in the Tech and Internet stocks. But for the 3 months that ended February the figures are: M1 1.1% M2:7.4% M3:8.7% Still loose by many historical measures, but a drop of over 4% in the rate of growth over a two-month period. I admit to an excess of wishful thinking when I compare this to the deceleration that preceded the market retreat in the summer of 1998, but as I recall, it is somewhat similar. And this time the Fed has seen what the consequences were of its precipitous three-step rate cut last fall. I don't think they will dare raise rates, but I think they might be willing to let the markets slide somewhat further than they did before cutting again. All speculation, of course.