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Re: federal reserves post# 98074

Wednesday, 04/16/2003 1:05:34 AM

Wednesday, April 16, 2003 1:05:34 AM

Post# of 704019
"The plan -- to pump the stock market to revive the economy will fail as it has since 2000. You have documented very well these intentions, and good intentions they are, but it will fail."
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federal reserves...

I think the Greenspan Gambit began at the earliest when he engineered the October bottom and the rally that followed - it was February and March of this year before I was confident from both his comments and market action that he was not only working to hold the market up, but trying to drive it higher in order to reflate the economy. During most of the bear market, Greenspan appears to have been more concerned with the occasional "traditional" intervention to slow the decline and stave off meltdowns that could damage the financial system, and that is just doing his job - the interventions were rare and so no complaints about that.

I think there is very little chance that he will make his gambit work, but I have been amazed at how well he has done to date and have learned to respect his power in the market. Looking at the charts, he is at a critical juncture now - if he can break the markets out to the upside, there could be some nice gains and he could get an opportunity to dump some inventory for gains if the mo-mo boys jump on board. If not, it could get ugly pretty quick.

mlsoft




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