Wealth effect

[Carl Remick]

>Moves in interest rates have always taken time to affect the real
>economy; the Volcker tightening that started in 1979 drove the fed
>funds rate from around 10% to over 19% in July 1981 before the killer
>recession took hold.
>
>Doug

In other words, forget about any "soft landing."  Trying to titrate the 
market through minute changes in the interest rates can be counted on to 
cause an overcorrection due to the lag time.

Carl

________________________________________________________________________
Get Your Private, Free E-mail from MSN Hotmail at http://www.hotmail.com