Come on Limtex, the next thing you'll want is to burn AG at the stake. He is not operating on his own, nor does he make these decisions by himself, he has to build a consensus of the other Fed Governors. These change every year (the voters, I mean). You got to understand that the January/March huge explosion was itself created by the Fed, they pumped a lot of liquidity into the market, late in 1999, because they feared (it so happen for no good reason, but no one knew for sure) financial dislocations due to Y2k, before that, in late Autumn 1998 they were forced to open the spigot because of instability in Asia. Right now is the right time to reign in the money flow, and keep ammunition dry if Asia once more falters. The Naz is actually still too high if you follow the progression year over year. He certainly is not "targetting" the poor Naz (I think that the dow from here might have a more severe fall than the naz with companies there growing under 10% per year fetching PE's in the 30 and 40), he is just doing what the constitution gave him the power to do, control the monetary side of the equation for best balance and as Craig said, equilibrium. We as investors just must try and understand the inevitable and take appropriate steps.
Zeev |
