Sonny from the "Q" thread ---could not have said it better :
To: Diamond H who wrote (83342)
From: Keith Feral Thursday, October 12, 2000 5:05 PM ET
Reply # of 83456
Bought a trading position on the close. Sentiment is past the extreme, techs have stopped going down, selloff in the conservative stocks to pay for losses in the tech stocks, currency imbalance between US and Europe favors lower interest rates. I would like to see 2 things happen - CSCO near $40 and major layoffs.
Everyone is going to have to pay for Greenspan's cynicism. His policy of intervention in interest rates to control the stock market has never posted positive results. The only thing that happens is that the weak get flushed out and competition is ruined. Once the storm has passed, the strong companies will go out and use their currency to absorb the competition. How in the world can productivity balance the threat of inflation if we don't have enough competition?
These modern recessions are the direct result of Greenspan's imagination. Everyone knows the only threat of inflation is energy - electricty, natural gas, and oil. Can anyone really believe that increasing interest rates will contain the spike in the price of oil. There is only way that I can imagine that tightened fiscal policies could balance oil. By tightening interest rates you increase the value of the dollar. This increases the purchasing power of the dollar relative to other currencies which are based on the value of the oil they export.
If this is the case, Greenspan is asking us to pay higher mortgages at home to protect us from the rising costs of oil. This is an insane interpretation of the Phillip's curve which only correlated interest rates and unemployment. Greenspan, Clinton, Gore, Rubin, Reno and the whole gang of them need to stop this casual intervention in free markets that are democratically ruled by the volatility that sweeps the financial markets every day. We don't need higher prices in every part of our budget to address the issue of stock valuations or the price of foreign crude. In reality, the increase in monthly mortgage rates is on a $250,000 mortgage is bigger than my monthly energy bills.
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