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Pastimes : Clown-Free Zone... sorry, no clowns allowed

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To: oldirtybastard who wrote (62848)1/30/2001 1:18:43 AM
From: Mark Adams  Read Replies (1) of 436258
 
Another opinion on the feds control of interest rates;

With the lower trending cycle in interest rates now begun, we might want to consider whether interest rate changes lead or lag economic swings. Frankly, I think interest rates reflect economic activity more than they lead it and, I believe, the Fed can only fine tune small to moderate economic swings. In the long run, it is powerless against periodic extremes of economic cycles. If the facts were otherwise, history would not show swings in the highs and lows of interest rates in 40-70 year cycles that trail both boom and bust. Hence, the oft' heard accusation the Fed moves with too little, too late. A dramatic easing means a dramatic downturn is in process. It's always been that way.

gold-eagle.com
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