How much of a rate hike on margin accounts would set off liquidating for margin calls to the extent that it would hit program traders "Trigger". Is the market so leveraged and tenuous that a .25 rate hike could have set off massive selling with a resultant domino effect. If the market hits its "circuit breaker(s)"...even one time, wouldn't, or couldn't, this precipitate a significant correction which could be politically devastating to Clintons Legacy (one of the few he has left)?

Doesn't it seem strange that A.G.'s appointment was made at such an opportune time? Doesn't this give the appearance that both Al and Bill are taking their marching orders from a higher authority?

Does anyone doubt the existance of the PPT (Plunge Protection Team)?

Does anyone think that Clinton (or more likely TPTB) is going to let the market crater during his "watch"....I don't think so myself.

I could go on but would rather have others' thoughts...this is not a rhetorical post. SOMETHING IS JUST NOT RIGHT IN THIS SCENARIO. I continue to read and study this market and economy and the more I study the more nervous I get.

-- NUTS! (Pistols@Dawn.com), January 15, 2000

Answers

Two points: 1)I agree with you, NUTS. The more you study this market (especially if you compare it to 1928-9), the more you come to realize that Price/Earings ratios (the mainstay of stock valuations until October, 1998) really are an important measure. 2)Regardless of the phony & sarcastic blather, gold will become more and more valuable in 2000 & 2001 as the oil price rises and the $US tanks (due to the world figuring out that the Euro is far more stable than the importing/exporting mess that is the US of A). DUMP YOUR STOCKS AND BUY GOLD!

-- Think It (Through@Pollies.Duh), January 15, 2000.

Nuts!, think of it as High Drama played with the world as it's stage.

The table is set... has several posts of merit.
My guess going into 2nd Quarter 2000:

1) a half point hike.
2) 30 year bonds yield over 8%
3) Oil at $27-30
4) NASDAQ 4000+
5) DJIA 12000+
6) GOV reports no inflation
7) "Declining stocks led advancing issues 4 to 1 in the last quarter"
8) In a recent poll Americans stated that -
    "yes, the surging economy is causing a great
    upswell in consumer confidence."

-- Possible Impact (posim@hotmail.com), January 16, 2000.

Pos Impact,

could be,,,

but I believe "Oil Shock" will tank the markets... I don't have the figures but oil has remained artificially low (due to shady deals with the saudis) for 20 years +

allowing for inflation, and I don't have the figures, oil should, like gold and silver, be far far higher

oil $50-60+

gold $600+

silver $12+

just swags - I think the saudis, the Muslim oil Rich states will shove it to Uncle Sam this time... and Japan will bail too...

-- Andy (2000EOD@prodigy.net), January 16, 2000.