<<his job is to make certain the economy doesn't tank because of high interest rates>>
Hi Cheryl ... I agree with you, but Greenspan's job is also to make sure that there is not too much money out there to overheat the economy in the first place, as in retrospect, he surely did in his response to the Asian financial collapse, the Long Term Capital crisis (the hedge fund outfit the Fed and the banks saved) and the flooding of the economy with cash for the non-event Y2K crisis.
In any case, the economy sure looks like it is tanking, and at this point, all I think the Fed can do is brighten our future 12 plus months down the line with rate cuts that will surely start in January (maybe early January). The dollar is showing signs of weakening, capital looks like it is starting to flow in an outward direction from the U.S. and even gold is starting to show signs of life.
In addition, if George W and the new congress start to push hard for a large and fat tax cut, they will cut the legs out from under the Fed who can really help the economy faster and more efficiently than fiscal policy.
To me it looks like more than a stock market event, it looks like a recession will be quickly upon us - how serious is a pure guess.
... and who is Frank? ... I thought 'old blue eyes' was put in a crypt years ago ... in fact I'm sure of it ... I can still hear the kids, ex-wives etc squabbling about the money.
Note: Victor, please don't read this. <g>
Disclaimer: The above is my personal opinion. I recommend that you do not base your investment decisions solely on any one person's views or analysis (including mine). Do your own research and take personal responsibility for your investment decisions.
Ken Wilson |
