Zeev's Turnips Patch-No Politics (ZEEV)

[federal reserves]

Keep an eye on the ECB - not expected to cut

yet they might, the FED gave them an open door by cheapening the dollar, but most say no! Will the Euro's remain vigilant against inflation and deficits and stick with their rigid targets? I can't tell.

I do know this.

The FED funds rate of 1.25 will be facing a higher CPI in the coming months because last year at this time (Along with the CRB) it deflated on the 9/11 crash as retailers gave huge discounts. Could be interesting to watch the reaction in the DOW as the CPI spikes YOY! Know this: the CRB is still at near 52 week highs and a weak dollar is usually good for further gains.

Greenspan gave the market more than they wanted, now Wall Street has to live with it. IMHO AG doesn't want to be the goat. He wanted to get out of the debate. Some might be squeamish a bit now because AG also said no more! Many may be wishing he kept a reserve of 25BPS for DECEMBER. BUT NO more cuts, per AG, so if stock earnings start to fall along with stock prices , it may result in a mini-panic. They can't knock on AG's door anymore unless there's a meltdown. Then come the coupon passes. At that point, the only valid investment is gold.