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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: HairBall who wrote (14040)	5/15/1999 11:27:00 AM
From: j g cordes	Read Replies (1) \| Respond to of 99985

My Reply to Kaltbaum and David Jones view on inflation.. exchange2000.com exchange2000.com Haven't wages stayed flat to down? Wages are the primary culprit of inflation. You're not going to knock down or regulate consumer price increases through Fed policy, only the market will do that through supply demand. As world economies come back on line there's going to be even more tenacious competition in production, driving down prices further. The last thing we need here is a higher cost of capital to compete with foreign cost structures. If the Fed starts to turn the screws you'll see consumers increasing their spending to get products before they go up in price.. that surge will later be interpreted as a need to further tighten. That's the cycle we need to avoid, as it chokes off the overall level of business activity in the mistaken belief that full employment and high capacity utilization are inflationary in and of themselves. They're not. We've had a liberal money supply pumping against last summers international defaults in currency including Asia and Russia, and it will continue as policy through y2k bankrun worries. This extra money pumped into the system to allow massive international dollar liquidity has provided much of the foder to inflate the US stock market. Liquidity will find a home of greatest appreciation. The stock market itself is the largest inflated asset, not wages, or commodities. Leverage is the greatest enemy of a market. When it works for you its great, when it works against you it creates overnight bankruptsies. Raising interest rates will pressure existing leveraged situations accelerating failures where they may have been worked out. The better cure is to tighten up on all conditions of leverage, not the cost of money. Send that off to Kaltbaum who's thinking, in my opinion, is out of the dark ages especially where he says.. "They need to show that the Fed is ahead of the game, that they're on top of things, not sitting idly by. Just a little tinkering to say, 'Hey, we're standing by, making sure everything's OK." That's like saying a police chief has to shoot someone in the community every once in awhile just to let them know they have guns.

To: HairBall who wrote (14040)	5/15/1999 1:48:00 PM
From: briskit	Respond to of 99985

LG,<OT> Reminds me of people who claim they have had "20 years of experience", when actually they had 1 year of experience 20 years in a row. To date, the denigrated J6P going with the trend as his friend has been able to enjoy imports all weekend without losing very much sleep. Next weekend is still up for grabs...back to my Red Dog and history 101 and lurking on TA threads <ggg>. Regards Mike

To: HairBall who wrote (14040)	5/15/1999 8:33:00 PM
From: Les H	Respond to of 99985

Off Topic and Politically Incorrect Department - Clinton Wins Monopoly Tournament ATLANTIC CITY - This year's annual Monopoly tournament ended with a surprise victory by President Clinton. This was the Chief Executive's first time competing in the tournament and many hope that it's his last. Clinton, responding to complaints about his playing tactics, told BNN, "The other competitors are just sore losers. I won fair and square." Clinton's competitors see it differently. Said Jim Parker, who lost to Clinton in the semi-finals, "He used his office as a means of changing the rules in his favor." Parker's brother, who was also defeated by the President, complained, "He was the only competitor who brought an attorney to dispute the rules of the game." Some of the controversial tactics used by Clinton included using his attorney, David Kendall, to keep him out of jail and engaging in deficit spending when money supplies dwindled. However the most controversial move by the President occurred when he ordered the IRS to audit other players every time they landed on the 'Income Tax' block. After the audits players were then ordered to pay their 'income tax' directly to Clinton. Despite bitter complaints by the other competitors, officials refused to disqualify Clinton because his public opinion polls remained high throughout the duration of the tournament.