The New Qualcomm - write what you like thread. Message Board

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Pastimes : The New Qualcomm - write what you like thread.

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To: Ramsey Su who wrote (2551)	1/22/2001 10:58:06 AM
From: Getch	Read Replies (1) of 12231

Adding another GG (Great Greenspan) to the already overloaded acronym pile is just too much. Anyhow, Greenspan has been blamed by everyone who has ever lost a nickle, but is very slow to be praised. It is his fault for causing the internet bubble with expanded money supply at the end of '99. That bubble will be regarded as a classic, right up there with the Japanese land bubble of the early 1990's. It was caused by many factors, including excessive money supply. Most of us are just pissed we didn't see it coming when in retrospect it was blowing up in our faces. Granted, money supply was expanded to fend off the great scourge of Y2K. At the time, it was probably the correct thing to do. I was in New Zealand (first to hit 2000) for the millenium, and the cheer in the bar at midnight was delayed for about 15 seconds, as nobody really knew whether the beer coolers would continue to work. If they hadn't... So we enter 2000 with money supply at a high, together with an economy at white hot but slowing. How does one achieve a reduction in money supply at a time when the economy is slowing. Easier money with interest rate cuts? Yes, there was a backlash against the couple ounces of Y2K prevention in that a reduction in interest rates had to be delayed, but the money supply has now been brought back into line, and interest rates can now be brought down. It is good that going into a slowdown we have already high interest rates. Look at Japan with no where else to go with near zero rates already. Reducing them is now the correct thing to do, and GG is doing it. We have often heard of the "soft-landing". I am wondering how often in the economic cycles it has actually happened? I remain bullish that the possibility of a soft landing is very high, given that the only real damage done to the economy in 2000 was to our portfolios.

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