posted 06-05-2000 10:27 AM         

And, one other note, people who don't care about high interest rates on their credit cards are being idiotic. If you carry a balance on your credit card, you are making a mistake, you can get a much better interest rate elsewhere if you need cash. The people who don't need to care about the interest rate on their credit cards are people who always pay off their balances on time. Those companies fleece you if you card a balance.

quote:

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Originally posted by pup:
I am still confused about how raising interest rates slows the economy. People who have high interest rate credit cards usually don't care what the interest rate is. Some do but most do not.

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posted 06-02-2000 06:25 PM         

quote:

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Originally posted by InvestorGuide Daily:
Manufacturing activity is slowing down. Construction spending is tapering off. And one of Detroit's Big Wheels is warning that auto sales may be slipping into low gear. Here is CNNfn's full coverage of today's economic news and what it means for financial markets and you. (source: CNNfn) http://cnnfn.com/news/specials/eyes_on_economy
As the stock market tries to make up its mind which way to go next, the biggest unknown is: how much higher will interest rates go? A lot depends on whether — and how fast — the economy is slowing. But investors looking for evidence in Friday's employment report may be disappointed. (source: MSNBC) http://msnbc.com/news/414452.asp

In brief:

- The number of Americans filing new claims for unemployment benefits edged up slightly this past week but remained at a level indicating an extremely tight labor market.

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posted 06-02-2000 10:00 AM         

In other news, that Jimminy Cricket guy should be gloating right about now. He just might have been right...but, even with the signs of a slowdown, I wouldn't be surprised to see 25 points from the Fed as a sobering note for the markets. We'll see. But, those of us that wait for the data miss out on days like today...

posted 06-01-2000 06:25 PM         

In brief:

- The number of Americans filing new claims for unemployment benefits edged up slightly this past week but remained at a level indicating an extremely tight labor market.

posted 05-30-2000 04:03 PM         

KSG

quote:

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Originally posted by JIMNY CRICKET:
THe FEd is done with it's tightening, I say job well done and we will see them again in November when they lower rates .25
JIMNY

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posted 05-29-2000 10:43 PM           

quote:

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Originally posted by KeithG:
Yes, Virginia, it’s the Federal Reserve that stands between you and growing your assets by investing in equities.

No, Virginia, it’s not because the Fed doesn’t like you. It’s just that you and your friends have been using your stock market gains from the past few years to shop till you drop.

The more equities shrug off the Fed's rate increases, the more the Fed will boost rates until the stock market cries "uncle."
That, in turn, has boosted economic growth far beyond the speed limit of four percent that the Fed presumably wants.

And while the stock market has given up some of its gains in response to the five previous hikes in interest rates in the past eleven months, this apparently is not enough for Alan Greenspan and his band of merry central bankers.

Taking stock

That’s why they raised interest rates a half-point last week and implied that more was in store, come June. The Fed wants to see the stock market go even lower than it already has.

I told you that the Fed is targeting the stock market in my column of April 6 (see column), no matter how much Alan Greenspan may assert that he is not doing so. The Fed always has, and it always will.

This is because the stock market, through its effect on wealth and confidence, has a lot to do with people’s attitudes and abilities to spend. Needless to say, the performance of the market influences business decisions as well.

To be sure, higher interest rates have a direct effect on the economy by jacking up borrowing costs and impacting corporate profits. This alone should depress equities’ prices.

Lately, however, the stock market has thumbed its nose at the Fed as investors continue to exhibit exuberance.

More booster shots

Well, let me tell you this: The more equities shrug off the Fed’s rate increases, the more the Fed will boost rates until the stock market cries “uncle.”

If the stock market doesn’t fall significantly from current levels, look for another half-point rate hike next month. And if that doesn’t do it, expect another increase in August.

Before you fire up those nasty e-mails, remember this: I don’t make the rules; I just play the game.

And in case you haven’t figured it out, the name of the game is “Don’t Fight the Fed.” If you’re opposed to higher interest rates and lower stock prices—tell it to Alan Greenspan, not me.

That’s my final answer. [/B]

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THe FEd is done with it's tightening, I say job well done and we will see them again in November when they lower rates .25
JIMNY

posted 05-26-2000 11:37 AM         

NEW YORK (CBS.MW) -- Want a quick way to make a million in the stock market? Start with two million—and bet against the Federal Reserve.

Yes, Virginia, it’s the Federal Reserve that stands between you and growing your assets by investing in equities.

No, Virginia, it’s not because the Fed doesn’t like you. It’s just that you and your friends have been using your stock market gains from the past few years to shop till you drop.

The more equities shrug off the Fed's rate increases, the more the Fed will boost rates until the stock market cries "uncle."
That, in turn, has boosted economic growth far beyond the speed limit of four percent that the Fed presumably wants.

And while the stock market has given up some of its gains in response to the five previous hikes in interest rates in the past eleven months, this apparently is not enough for Alan Greenspan and his band of merry central bankers.

Taking stock

That’s why they raised interest rates a half-point last week and implied that more was in store, come June. The Fed wants to see the stock market go even lower than it already has.

I told you that the Fed is targeting the stock market in my column of April 6 (see column), no matter how much Alan Greenspan may assert that he is not doing so. The Fed always has, and it always will.

This is because the stock market, through its effect on wealth and confidence, has a lot to do with people’s attitudes and abilities to spend. Needless to say, the performance of the market influences business decisions as well.

To be sure, higher interest rates have a direct effect on the economy by jacking up borrowing costs and impacting corporate profits. This alone should depress equities’ prices.

Lately, however, the stock market has thumbed its nose at the Fed as investors continue to exhibit exuberance.

More booster shots

Well, let me tell you this: The more equities shrug off the Fed’s rate increases, the more the Fed will boost rates until the stock market cries “uncle.”

If the stock market doesn’t fall significantly from current levels, look for another half-point rate hike next month. And if that doesn’t do it, expect another increase in August.

Before you fire up those nasty e-mails, remember this: I don’t make the rules; I just play the game.

And in case you haven’t figured it out, the name of the game is “Don’t Fight the Fed.” If you’re opposed to higher interest rates and lower stock prices—tell it to Alan Greenspan, not me.