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In a message dated 97-09-15 07:01:53 EDT, TRaffertu@xxxxxxx writes:
<< 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. >>
Hi Ray.....
There are several kinds of "inflation".."price inflation" is one. As in the
case of a rising stock market that is now reflecting the
"monetary inflation"....aided and abeted by the Fed.
There is also "wage & price of goods" inflation.
Rising prices can never be equated with "growth".....Only the
manufacture and sale of more "widgets" can be called growth.
We did more volume this year than last.
The most INFLATIONARY thing around is the STOCK MARKET....and
can be compared only with the SOUTH SEA ISLAND BUBBLE or
TULIP BULB MANIA.... of years long gone.
This is NOT growth.....it is HOT AIR.......
and REALITY IS: The FED follows and does not lead nor did
they cause....anything.
However, if the environment is "seemingly favorable" they will
step forward and take credit....just as though they planned it
that way.
When things are less favorable....whatch them back away , establish
new commissions and find SOMEONE OR SOMETHING to blame.
Today WST Journal has an article on Warren Buffet....and he
could be the butt of the "warth to come".....They are already
pointing the finger....suggesting that Warren may have done
some "selling"......tut, tut.....you can buy, but mustn't sell.
Thanks for letting me clarify,
GerryB/jer33:3
learner/teacher
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