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At 8:04 PM -0400 4/18/01, M. Simms wrote:
>Anyone care to venture WHY the Fed cut rates in a naturally rising market ?
>Here are the options:
>
>1) they're stupid / they don't understand markets
>2) "head-in-the-sand" mentality
>3) it was a political move to bolster Bush's flagging popularity and to
>offset his weak tax reduction plan
>4) Greenspan was taking a vacation to the Bahamas and wanted to "get it out
>of the way" before he left
>5) crush the shorts/bears and "Teach em a lesson"
>6) demonstrate their "committment" to the new economy
>7) set-up the market for yet another big crater in the 3rd quarter
How about "because the yield curve was inverted so they had to
recognize what the market had already done".
Bob Fulks
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