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Jerry B wrote:
>There is nothing like a "falling market" to KILL inflation.....and the
Generals will lead the >way and the troops will follow.
This is no more true than to say a rising market causes inflation.
The market falls or rises (over longer time periods) because of the Fed's
pollicy of controling inflation by controlling growth using intrest rates as
the tool. I know you know this: (When rates go up consumption goes down;
consumption goes down, profits (and stock prices) go down; profits go down,
employment goes down; employment goes down, consumption goes down...) untill
the Fed sees the reaction and attempts to compensate by lowering rates.
>At last we have someone to BLAME.
This is true, we do have someone , actually many someones, to
blame. We can blame ourselves for expecting something from government for
nothing. We can blame elected officials, from the president down to the town
council for feeding on our desire for the self serving purpose of being
re-elected. And we can blame the Fed for taking the easy route of killing
growth to control inflation instead of attacking the real problem, controling
the government and protecting us from ourselves.
>How can The Generals be held responsible for YOUR remaining fully invested
in stocks?
I am never fully invested in stocks. I trade the OEX and make
just as much money if people are on the production line or the unemployment
line, but I prefer the former.
>learner/teacher
You always sign your name this way and I respect you for that.
But, please learn the point of my original post that GROWTH DOES NOT CAUSE
INFLATION! Government (ourselves in a democracy) causes inflation. If the
Fed can learn this they will not raise on indicators of growth. Here's a
novil idea that just came to me. Instead of raising rates because employment
is up the Fed should raise rates when congress and the president raises the
deficite and let the public know that is why they are doing it. Then watch
the economy realy soar!
Good luck and good trading,
Ray Raffurty
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