it sounds at first sight somehow compelling. but life and economics especially is not so easy. higher rates in the us would be the end for the fragile us economy - not only suvs wouldnt be bought anymore but all cars and and and........... economics also shows that more of a good leads to lower prices. how will the fed bring it about that rates will increase?? and all the economies which suffer from inflation will not want to lower rates but to increase them. we are witnessing second round effects - just look at lufthansa. and dont forget the price increases of companies like dow chemical and the like.
given the actions by the fed - selling their good quality treasuries against cramp form the investment banks on a large scale (if i see this right) - there is a big difference on the situation. thus the markets will rather go lower (dow 10000)
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i disagree to tl. it is really very, very bad. and there is no sign of change to the better yet. is it only because of the fed actions that the stock market keeps up so well?
it is cdertainly also ethanol. gm is too much affected to be really honest. of course inflation and there especially energy inflation also has its part.
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economics also shows that more of a good leads to lower prices. how will the fed bring it about that rates will increase?? and all the economies which suffer from inflation will not want to lower rates but to increase them. we are witnessing second round effects - just look at lufthansa. and dont forget the price increases of companies like dow chemical and the like.
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probably because the fed has to care also the usdollar
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change to the better yet. is it only because of the fed actions that the stock market keeps up so well?
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we will see the lows of march again.