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Pastimes : All Clowns Must Be Destroyed

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To: RocketMan who wrote (30395)5/1/2000 6:50:00 PM
From: pater tenebrarum   of 42523
 
RM, you have put the problem nicely into words...the choice the Fed faces IS rather stark: either allow the imbalances (the credit & asset bubble is one of them, the current account and accelerating inflation are the others) to grow further, or apply the bitter medicine and allow the excesses to be wrung out.
if the go for muddling through and allowing the imbalances to continue to pile up, they risk an even bigger blow-up at a later stage. if they try to nip things in the bud, the rest of the world as you say may not be able to continue to swim.
that's what i mean when i say they're in a box...no matter what they do, it will probably be wrong...
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