Heinz,
You're definitely right about him being scared to burst it, but at this stage I'm not even sure he's in control of the situation.
He spent the entire decade of the 90s inflating whenever the system was stressed. Unfortunately, he erred on the side of being too easy every time. That's what created the bubble and generated the speculative attitudes.
Late 98 was the real bonehead move though. Certainly the system was stressed, but he went way overboard with surprise cuts and all. Then when the bubble reflated, he waited way to long to do something about it.
The only way to stop it now is to set interest rates at a level that makes people stop borrowing to speculate. Other than that, if they want to, he's almost forced to provide the reserves to expand credit. He's the worst of all time.
And again, that part upsets me. But the thing that really gets me crazy is that Wall St., venture capitalists, corporate executives, favored customers, etc... are enriching themselves at the expense of the public. Everyone is in bubble support and promote mode via spin, lies, dumb share repurchases, accounting games, winks and nods etc...
It's a game of financial musical chairs and Wall St is getting rich without caring one bit about the ultimate damage they are doing to the middle class and the country.
It's totally disgraceful. I hope there's some truth to the saying "what comes around goes around".
Wayne |
