Qcoman, the Fed is working against free market mechanisms
the bond market is trading as much from laissez faire as anticipation of what the Fed will do, with key attention paid to the thought process advertised
the long bond, middle maturities, and short paper should determine policy
the Fed should step in during emergencies ONLY
otherwise, we have a controlled economy
we as a free nation cannot criticize communist central committee policymaking and controlling bodies in one breath, then tolerate Federal Reserve Board central policymaking and controlling bodies in the second breath
the Fed incorrectly anticipated widespread snafus with Y2K
now it is unwinding that error
in 1997 the Fed provided a "pre-emptive measure against inflation"
we got the Asian Meltdown 3-4 months later
anytime you hear "pre-emptive", think destabilization of free market mechanisms that have worked for centuries
if the economy needs to cool off, let it cool off on its own thru difficulty in hiring capabile staff, unavailable corporate paper, shrinking margins affecting capital investment budgets, etc.
why assume that a recession would be vicious or violent or especially painful?
do you truly believe human intervention produces less disturbing recessionary events?
why???
do you doubt the internal mechanisms that avoid vicious distrubances?
the USdollar and USTBond are excellent mechanisms built in
why turn off the money flow spigot?
oh yes, to fix the Y2K Fed mistake !!!
why attempt to control money?
let the free market find an equilibrium
I think Greenspan is a dangerous person now
without realizing it, you side with communist central planning principles
/ jim |
