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Technology Stocks : Intel Corporation (INTC)
INTC 37.81+1.5%3:46 PM EST

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To: Joe NYC who wrote (133041)4/20/2001 3:07:11 PM
From: kapkan4u  Read Replies (2) of 186894
 
<What would you do if you were in his place? I think he should consider increasing the money supply (I am not sure how much of that he has done) rather than just cut the rates.>

He should realize that the recession will happen regardless of the interest rates. Look at Japan. They have a 12 year long recession with interest rates around zero. They had a bubble in the real estate. We had a bubble in the stock market.

Considering the severity of the current situation, interest rate cuts should only be used to fight deflation in a prolonged economic slump. This is happening in Japan now, but they already have interest rates at zero. Now all they can do is to try to spend their way out of the slump, which is hopeless IMHO.

Kap
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