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Up or Down

Economics | June 27th, 2008

If the U.S. stock market keeps going down and oil keeps going up doesn’t the Fed have a problem whether they lower or raise rates? We bailed out LTCM summer 1998. Then we lowered rates to nothing after 9/11 to prevent a further stock market drop. Those rate decreases after 9/11 supplied the liquidity to grow the real estate bubble. Not so smart moves over 10 years.

What Others Think

Greg Cardelli Added:

July 1st, 2008 at 9:10 am

Those fundamental issues don’t matter to trend traders. They are only catalysts for trends. Just play the trend, cut out the ‘noise’.

What do you think?

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