Question. Did the Fed not cut rates and inject liquidity all the way down from 2000-2002? Why do you believe this to be fail proof?
Answer. Lower short-term interest rates and increased liquidity never failed to support the financial markets. The issue is what kind of problems it will create if the Fed eases too aggressively as Greenspan did after the 2000 market peak.
The 2000-2002 easing is the main cause for the commodity boom and the collapse of the dollar.
More on http://www.peterdag.com/.
George Dagnino, PhD
Editor, The Peter Dag Portfolio
Since 1977
3 comments:
The US$ is dropping like a stone. Will you start to recommend more foreign stocks or do you prefer large international firms like CAT, BHP, CS, etc.?
So if it doesn't fail it just has to reach a level at which it can take hold? So in 2000-02 that was just 47% from the top?
Fed in a box here. Gold will explode if Ben warms up the copters.
The market is headed for 12,500 and maybe 12,000 after breaking the neckline of a head and shoulders top. I would like to read opposing opinions.
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