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Author: qcw Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 454750  
Subject: Re: Debt Loads Date: 2/15/2002 5:25 PM
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The more I think about the ā€œVā€ shaped recovery story,
the more I dismiss it. With any hint of a recovery interest
rates will rise and choke off the main catalyst for the
strength the economy has had ā€“ residential housing and
consumer borrowing. Raising interest rates will also bury
companies that are using low interest rates as life
support.


Does anyone really think the Fed would raise interest rates at the first sign of recovery? I don't, but I am just one guy. It does surprise me to already hear the CNBC groupies talking about a .25pts increase on the next fed meeting. I really don't see it. With the current money problems in Argentina and Japan no longer backing their money, the accounting problems (and I am sure there is much more of those to come) I suspect there is more market down to come but we don't see it yet. If the Fed put the breaks on too soon it could be a recipe for completely breaking the confidence of the investor/consumer.
-Q
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